MSAH WACC - Weighted Average Cost of Capital
The WACC of Man Shing Agricultural Holdings Inc (MSAH) is 7.5%.
| Range | Selected | |
| Cost of equity | 15.4% - 27.2% | 21.3% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.5% - 13.5% | 9% |
| WACC | 4.1% - 11.0% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 2.52 | 4 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.4% | 27.2% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 14.35 | 14.35 |
| Cost of debt | 4.5% | 13.5% |
| After-tax WACC | 4.1% | 11.0% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MSAH | Man Shing Agricultural Holdings Inc | 14.35 | 1.15 | 0.1 |
| ANPFF | Anpulo Food Inc | 0.84 | 0.93 | 0.57 |
| ASRE | Astra Energy Inc | 1.03 | 1.65 | 0.94 |
| BGA.V | BioNeutra Global Corp | 5.48 | 0.38 | 0.08 |
| BIQIF | BIQI International Holdings Corp | 213616.16 | 0 | 0 |
| BSFC | Blue Star Foods Corp | 0.77 | 1.76 | 1.13 |
| FAMI | Farmmi Inc | 3.59 | 0.31 | 0.09 |
| PARF | Paradise Inc | 0.01 | 0.42 | 0.42 |
| RMCF | Rocky Mountain Chocolate Factory Inc (Delaware) | 0.13 | 0.45 | 0.41 |
| TOFB | Tofutti Brands Inc | 0.01 | 0.61 | 0.61 |
| Low | High | |
| Unlevered beta | 0.29 | 0.48 |
| Relevered beta | 3.27 | 5.48 |
| Adjusted relevered beta | 2.52 | 4 |
MSAH'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 MSAH:
cost_of_equity (21.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2.52) + 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.