VEND
Generation Next Franchise Brands Inc
Price:  
0.00 
USD
Volume:  
16,320.00
United States | Trading Companies & Distributors
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VEND WACC - Weighted Average Cost of Capital

The WACC of Generation Next Franchise Brands Inc (VEND) is 8.0%.

The Cost of Equity of Generation Next Franchise Brands Inc (VEND) is 35,063.55%.
The Cost of Debt of Generation Next Franchise Brands Inc (VEND) is 7.40%.

Range Selected
Cost of equity 1,960.70% - 68,166.40% 35,063.55%
Tax rate -% - 0.10% 0.05%
Cost of debt 7.00% - 7.80% 7.40%
WACC 7.0% - 9.0% 8.0%
WACC

VEND WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.2% 5.2%
Adjusted beta 461.68 13008.07
Additional risk adjustments 0.0% 0.5%
Cost of equity 1,960.70% 68,166.40%
Tax rate -% 0.10%
Debt/Equity ratio 57425.86 57425.86
Cost of debt 7.00% 7.80%
After-tax WACC 7.0% 9.0%
Selected WACC 8.0%

VEND'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 VEND:

cost_of_equity (35,063.55%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (461.68) + 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.