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Shengfeng Development Limited Class A Ordinary Shares (SFWL) — WACC Analysis

WACC Breakdown

Shengfeng Development Limited Class A Ordinary Shares (SFWL) has a weighted average cost of capital (WACC) of 4.2%. The cost of equity is 6.7%, derived from a beta of 0.03 and a risk-free rate of 5.2%. The after-tax cost of debt is 2.8%. The capital structure is 37.2% equity and 62.8% debt.

Interpretation

A WACC of 4.2% suggests that the market views Shengfeng Development Limited Class A Ordinary Shares as relatively low-risk, with a lower cost of financing.

Investors can compare SFWL's WACC of 4.2% against industry peers to gauge its relative financing costs. A beta of 0.03 reflects the stock's volatility relative to the broader market.

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VALUATION

SFWL WACC: 4.23% for Shengfeng Development Limited Class A Ordinary Shares

Current inputs imply a 6.73% cost of equity and a 3.49% 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

Shengfeng Development Limited Class A Ordinary Shares Common Stock (SFWL) WACC Results
Weighted Average Cost of Capital
4.23%
Cost of Equity
6.73%
Risk-Free Rate5.24%
Beta0.03
Market Risk Premium4.23%
Cost of Debt
2.75%
Pre-Tax Cost of Debt3.49%
Tax Rate21.00%
Tax Shield0.73%
Capital Structure
Equity: 37.19%($46.47M)
Debt: 62.81%($78.48M)
Equity Component
2.50%
37.19% × 6.73%
Debt Component
1.73%
62.81% × 2.75%

Shengfeng Development Limited Class A Ordinary Shares (SFWL) WACC in context

Shengfeng Development Limited Class A Ordinary Shares (SFWL) currently screens with an estimated WACC of 4.23%. That blends a 6.73% cost of equity, a 3.49% pre-tax cost of debt, and a 37.19% 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 SFWL WACC implies

A 4.23% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates SFWL

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.03 and equity accounts for 37.19% 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.

SFWL WACC: 4.23% — Shengfeng Development Limited Class A Ordinary Shares Cost of Capital (October 2026) | DeepViews