Skip to content

ReTo Eco-Solutions, Inc. Class A Shares (RETO) — WACC Analysis

WACC Breakdown

ReTo Eco-Solutions, Inc. Class A Shares (RETO) has a weighted average cost of capital (WACC) of 10.2%. The cost of equity is 8.1%, derived from a beta of 0.71 and a risk-free rate of 4.7%. The after-tax cost of debt is 127.7%. The capital structure is 98.2% equity and 1.8% debt.

Interpretation

A WACC of 10.2% is moderate, reflecting the market's balanced risk assessment of ReTo Eco-Solutions, Inc. Class A Shares.

Investors can compare RETO's WACC of 10.2% against industry peers to gauge its relative financing costs. A beta of 0.71 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

RETO WACC: 10.20% for ReTo Eco-Solutions, Inc. Class A Shares

Current inputs imply a 8.08% cost of equity and a 127.66% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
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

ReTo Eco-Solutions, Inc. Class A Shares Common Stock (RETO) WACC Results
Weighted Average Cost of Capital
10.20%
Cost of Equity
8.08%
Risk-Free Rate4.67%
Beta0.71
Market Risk Premium4.23%
Cost of Debt
127.66%
Pre-Tax Cost of Debt127.66%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 98.23%($10.93M)
Debt: 1.77%($0.20M)
Equity Component
7.94%
98.23% × 8.08%
Debt Component
2.26%
1.77% × 127.66%

ReTo Eco-Solutions, Inc. Class A Shares (RETO) WACC in context

ReTo Eco-Solutions, Inc. Class A Shares (RETO) currently screens with an estimated WACC of 10.20%. That blends a 8.08% cost of equity, a 127.66% pre-tax cost of debt, and a 98.23% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What RETO WACC implies

A 10.20% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates RETO

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.71 and equity accounts for 98.23% 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.