TTCF WACC - Weighted Average Cost of Capital
The WACC of Tattooed Chef Inc (TTCF) is 6.1%.
| Range | Selected | |
| Cost of equity | 5.9% - 8.8% | 7.35% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 8.5% | 7.75% |
| WACC | 5.4% - 6.9% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.0% | 6.0% |
| Adjusted beta | 0.34 | 0.6 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.9% | 8.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 2.77 | 2.77 |
| Cost of debt | 7.0% | 8.5% |
| After-tax WACC | 5.4% | 6.9% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TTCF | Tattooed Chef Inc | 2.77 | 0.94 | 0.31 |
| AMNF | Armanino Foods Of Distinction Inc | 0.01 | 0.08 | 0.08 |
| BABY.V | Else Nutrition Holdings Inc | 0 | 0.93 | 0.93 |
| CUBV | CUBA Beverage Co | 0.17 | -0.09 | -0.08 |
| CUSI | Cuisine Solutions Inc | 0.02 | -0.08 | -0.08 |
| GIS | General Mills Inc | 0.44 | -0.16 | -0.12 |
| MMMB | MamaMancini's Holdings Inc | 0.07 | 0.42 | 0.4 |
| NUZE | NuZee Inc | 0 | -1.24 | -1.23 |
| PETZ | TDH Holdings Inc | 0.04 | 0.49 | 0.47 |
| PLAG | Planet Green Holdings Corp | 0.16 | -2.33 | -2.08 |
| Low | High | |
| Unlevered beta | -0.08 | 0.17 |
| Relevered beta | 0.01 | 0.4 |
| Adjusted relevered beta | 0.34 | 0.6 |
TTCF'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 TTCF:
cost_of_equity (7.35%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.34) + 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.