MEAT.CN WACC - Weighted Average Cost of Capital
The WACC of Modern Plant Based Foods Inc (MEAT.CN) is 5.0%.
| Range | Selected | |
| Cost of equity | 4.8% - 6.8% | 5.8% |
| Tax rate | 0.1% - 0.2% | 0.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.4% - 5.6% | 5.0% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.32 | 0.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.8% | 6.8% |
| Tax rate | 0.1% | 0.2% |
| Debt/Equity ratio | 1.06 | 1.06 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.4% | 5.6% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MEAT.CN | Modern Plant Based Foods Inc | 1.06 | 4.13 | 2 |
| AMNF | Armanino Foods Of Distinction Inc | 0.01 | 0.1 | 0.1 |
| BGA.V | BioNeutra Global Corp | 5.48 | 0.38 | 0.06 |
| BRFH | Barfresh Food Group Inc | 0.02 | 0.86 | 0.84 |
| CUBV | CUBA Beverage Co | 0.17 | -0.09 | -0.08 |
| DLC.V | DLC Holdings Corp | 0.91 | -0.86 | -0.45 |
| GB.V | Ginger Beef Corp | 0.38 | 0.19 | 0.14 |
| GLG.TO | Glg Life Tech Corp | 33.27 | -0.49 | -0.01 |
| HCEI | Healthy Coffee International Inc | 0.03 | 0 | 0 |
| MMMB | MamaMancini's Holdings Inc | 0.07 | 0.42 | 0.39 |
| NUZE | NuZee Inc | 0 | -1.24 | -1.23 |
| Low | High | |
| Unlevered beta | 0 | 0.1 |
| Relevered beta | -0.01 | 0.15 |
| Adjusted relevered beta | 0.32 | 0.43 |
MEAT.CN'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 MEAT.CN:
cost_of_equity (5.80%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.32) + 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.