The WACC of Organto Foods Inc (OGO.V) is 5.9%.
Range | Selected | |
Cost of equity | 5.5% - 7.0% | 6.25% |
Tax rate | 0.4% - 0.8% | 0.6% |
Cost of debt | 4.3% - 4.5% | 4.4% |
WACC | 5.3% - 6.6% | 5.9% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.32 | 0.36 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.5% | 7.0% |
Tax rate | 0.4% | 0.8% |
Debt/Equity ratio | 0.21 | 0.21 |
Cost of debt | 4.3% | 4.5% |
After-tax WACC | 5.3% | 6.6% |
Selected WACC | 5.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
OGO.V | Organto Foods Inc | 0.21 | -0.75 | -0.62 |
AGRO | Adecoagro SA | 1.2 | -0.23 | -0.1 |
ASRE | Astra Energy Inc | 0.97 | 2.02 | 1.03 |
BIQIF | BIQI International Holdings Corp | 213616.16 | 0 | 0 |
FAMI | Farmmi Inc | 3.42 | 0.35 | 0.08 |
GB.V | Ginger Beef Corp | 0.38 | 0.19 | 0.14 |
NUZE | NuZee Inc | 0 | -1.24 | -1.23 |
PME | Pingtan Marine Enterprise Ltd | 16.8 | -0.71 | -0.04 |
TOFB | Tofutti Brands Inc | 0.01 | 0.49 | 0.49 |
UMAM | Umami Sustainable Seafood Inc | 0.85 | 0.57 | 0.31 |
Low | High | |
Unlevered beta | -0.02 | 0.1 |
Relevered beta | -0.01 | 0.04 |
Adjusted relevered beta | 0.32 | 0.36 |
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 OGO.V:
cost_of_equity (6.25%) = risk_free_rate (4.15%) + 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.