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Freight Technologies, Inc. Ordinary Shares (FRGT) — WACC Analysis

WACC Breakdown

Freight Technologies, Inc. Ordinary Shares (FRGT) has a weighted average cost of capital (WACC) of 20.0%. The cost of equity is 8.9%, derived from a beta of 0.99 and a risk-free rate of 4.7%. The after-tax cost of debt is 26.0%. The capital structure is 22.5% equity and 77.5% debt.

Interpretation

A WACC of 20.0% indicates that the market perceives Freight Technologies, Inc. Ordinary Shares as higher-risk, requiring a greater return to compensate investors.

Investors can compare FRGT's WACC of 20.0% against industry peers to gauge its relative financing costs. A beta of 0.99 reflects the stock's volatility relative to the broader market.

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VALUATION

FRGT WACC: 20.00% for Freight Technologies, Inc. Ordinary Shares

Current inputs imply a 8.87% cost of equity and a 25.97% 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

Freight Technologies, Inc. Ordinary Shares Common Stock (FRGT) WACC Results
Weighted Average Cost of Capital
20.00%
Cost of Equity
8.87%
Risk-Free Rate4.67%
Beta0.99
Market Risk Premium4.23%
Cost of Debt
25.97%
Pre-Tax Cost of Debt25.97%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 22.50%($0.85M)
Debt: 77.50%($2.94M)
Equity Component
2.00%
22.50% × 8.87%
Debt Component
20.12%
77.50% × 25.97%

Freight Technologies, Inc. Ordinary Shares (FRGT) WACC in context

Freight Technologies, Inc. Ordinary Shares (FRGT) currently screens with an estimated WACC of 20.00%. That blends a 8.87% cost of equity, a 25.97% pre-tax cost of debt, and a 22.50% 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 FRGT 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 FRGT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.99 and equity accounts for 22.50% 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.