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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 17.7%. The cost of equity is 7.9%, derived from a beta of 0.46 and a risk-free rate of 5.2%. The after-tax cost of debt is 127.7%. The capital structure is 91.9% equity and 8.1% debt.

Interpretation

A WACC of 17.7% indicates that the market perceives ReTo Eco-Solutions, Inc. Class A Shares as higher-risk, requiring a greater return to compensate investors.

Investors can compare RETO's WACC of 17.7% against industry peers to gauge its relative financing costs. A beta of 0.46 reflects the stock's volatility relative to the broader market.

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VALUATION

RETO WACC: 17.65% for ReTo Eco-Solutions, Inc. Class A Shares

Current inputs imply a 7.92% 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
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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

ReTo Eco-Solutions, Inc. Class A Shares Common Stock (RETO) WACC Results
Weighted Average Cost of Capital
17.65%
Cost of Equity
7.92%
Risk-Free Rate5.21%
Beta0.46
Market Risk Premium4.23%
Cost of Debt
127.66%
Pre-Tax Cost of Debt127.66%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 91.87%($2.23M)
Debt: 8.13%($0.20M)
Equity Component
7.27%
91.87% × 7.92%
Debt Component
10.38%
8.13% × 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 17.65%. That blends a 7.92% cost of equity, a 127.66% pre-tax cost of debt, and a 91.87% 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 RETO WACC implies

A 17.65% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

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 0.46 and equity accounts for 91.87% 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.

RETO WACC: 17.65% — ReTo Eco-Solutions, Inc. Class A Shares Cost of Capital (October 2026) | DeepViews