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Borealis Foods Inc. Class A Common Shares (BRLS) — WACC Analysis

WACC Breakdown

Borealis Foods Inc. Class A Common Shares (BRLS) has a weighted average cost of capital (WACC) of 20.0%. The cost of equity is 8.1%, derived from a beta of 0.52 and a risk-free rate of 5.2%. The after-tax cost of debt is 76.0%. The capital structure is 70.8% equity and 29.2% debt.

Interpretation

A WACC of 20.0% indicates that the market perceives Borealis Foods Inc. Class A Common Shares as higher-risk, requiring a greater return to compensate investors.

Investors can compare BRLS's WACC of 20.0% against industry peers to gauge its relative financing costs. A beta of 0.52 reflects the stock's volatility relative to the broader market.

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VALUATION

BRLS WACC: 20.00% for Borealis Foods Inc. Class A Common Shares

Current inputs imply a 8.10% cost of equity and a 76.03% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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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

Borealis Foods Inc. Class A Common Shares Common Stock (BRLS) WACC Results
Weighted Average Cost of Capital
20.00%
Cost of Equity
8.10%
Risk-Free Rate5.22%
Beta0.52
Market Risk Premium4.23%
Cost of Debt
76.03%
Pre-Tax Cost of Debt76.03%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 70.76%($19.66M)
Debt: 29.24%($8.12M)
Equity Component
5.73%
70.76% × 8.10%
Debt Component
22.23%
29.24% × 76.03%

Borealis Foods Inc. Class A Common Shares (BRLS) WACC in context

Borealis Foods Inc. Class A Common Shares (BRLS) currently screens with an estimated WACC of 20.00%. That blends a 8.10% cost of equity, a 76.03% pre-tax cost of debt, and a 70.76% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What BRLS WACC implies

A 20.00% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates BRLS

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.52 and equity accounts for 70.76% 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.