WFCF WACC - Weighted Average Cost of Capital
The WACC of Where Food Comes From Inc (WFCF) is 7.8%.
| Range | Selected | |
| Cost of equity | 6.0% - 9.6% | 7.8% |
| Tax rate | 27.2% - 28.9% | 28.05% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.0% - 9.6% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.47 | 0.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 9.6% |
| Tax rate | 27.2% | 28.9% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.0% | 9.6% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WFCF | Where Food Comes From Inc | 0 | 0.02 | 0.02 |
| CLGX | Corelogic Inc | 0.32 | 1.14 | 0.93 |
| CLVT | CLARIVATE PLC | 1.53 | 0.63 | 0.3 |
| CSGP | CoStar Group Inc | 0.03 | 0.69 | 0.68 |
| INFO | IHS Markit Ltd | 0.11 | 1.05 | 0.98 |
| INNI | Innovaro Inc | 31.46 | 1.96 | 0.08 |
| KERN | Akerna Corp | 4.5 | -0.26 | -0.06 |
| REKR | Rekor Systems Inc | 0.16 | 1.88 | 1.7 |
| SGSI | Spectrum Global Solutions Inc | 0.54 | -0.77 | -0.56 |
| TRU | TransUnion | 0.31 | 1.58 | 1.29 |
| Low | High | |
| Unlevered beta | 0.22 | 0.78 |
| Relevered beta | 0.21 | 0.78 |
| Adjusted relevered beta | 0.47 | 0.85 |
WFCF'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 WFCF:
cost_of_equity (7.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.47) + 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.