IFMK WACC - Weighted Average Cost of Capital
The WACC of iFresh Inc (IFMK) is 7.2%.
| Range | Selected | |
| Cost of equity | 1626.2% - 4503.8% | 3065% |
| Tax rate | 8.8% - 24.6% | 16.7% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 7.1% - 7.4% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 352.69 | 803.39 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 1626.2% | 4503.8% |
| Tax rate | 8.8% | 24.6% |
| Debt/Equity ratio | 2148.13 | 2148.13 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 7.1% | 7.4% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IFMK | iFresh Inc | 2148.13 | -38.82 | -0.02 |
| ANCSQ | American Consumers Inc | 1.44 | 0.94 | 0.41 |
| ATD.B.TO | Alimentation Couche-Tard Inc | 0.23 | 0.92 | 0.76 |
| CASY | Caseys General Stores Inc | 0.1 | 0.59 | 0.55 |
| CLIQ.TO | Alcanna Inc | 0.72 | 1.55 | 0.95 |
| NGVC | Natural Grocers By Vitamin Cottage Inc | 0.04 | 1 | 0.97 |
| NWC.TO | North West Company Inc | 0.16 | -0.24 | -0.21 |
| OG.V | Organic Garage Ltd | 3.49 | 1.01 | 0.25 |
| RUM.V | Rocky Mountain Liquor Inc | 2.76 | 0.27 | 0.08 |
| SFM | Sprouts Farmers Market Inc | 0 | 0.77 | 0.77 |
| VLGEA | Village Super Market Inc | 0.17 | 0.34 | 0.3 |
| Low | High | |
| Unlevered beta | 0.3 | 0.55 |
| Relevered beta | 525.91 | 1198.6 |
| Adjusted relevered beta | 352.69 | 803.39 |
IFMK's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for IFMK:
cost_of_equity (3,065.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (352.69) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.