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Mission Produce, Inc. Common Stock (AVO) — WACC Analysis

WACC Breakdown

Mission Produce, Inc. Common Stock (AVO) has a weighted average cost of capital (WACC) of 6.5%. The cost of equity is 8.1%, derived from a beta of 0.53 and a risk-free rate of 5.2%. The after-tax cost of debt is 2.2%. The capital structure is 72.6% equity and 27.4% debt.

Interpretation

A WACC of 6.5% suggests that the market views Mission Produce, Inc. Common Stock as relatively low-risk, with a lower cost of financing.

Investors can compare AVO's WACC of 6.5% against industry peers to gauge its relative financing costs. A beta of 0.53 reflects the stock's volatility relative to the broader market.

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VALUATION

AVO WACC: 6.51% for Mission Produce, Inc. Common Stock

Current inputs imply a 8.12% cost of equity and a 2.83% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Mission Produce, Inc. Common Stock Common Stock (AVO) WACC Results
Weighted Average Cost of Capital
6.51%
Cost of Equity
8.12%
Risk-Free Rate5.22%
Beta0.53
Market Risk Premium4.23%
Cost of Debt
2.23%
Pre-Tax Cost of Debt2.83%
Tax Rate21.00%
Tax Shield0.59%
Capital Structure
Equity: 72.57%($1028.91M)
Debt: 27.43%($388.90M)
Equity Component
5.90%
72.57% × 8.12%
Debt Component
0.61%
27.43% × 2.23%

Mission Produce, Inc. Common Stock (AVO) WACC in context

Mission Produce, Inc. Common Stock (AVO) currently screens with an estimated WACC of 6.51%. That blends a 8.12% cost of equity, a 2.83% pre-tax cost of debt, and a 72.57% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What AVO WACC implies

A 6.51% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates AVO

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.53 and equity accounts for 72.57% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.