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Village Farms International, Inc. Common Shares (VFF) — WACC Analysis

WACC Breakdown

Village Farms International, Inc. Common Shares (VFF) has a weighted average cost of capital (WACC) of 9.8%. The cost of equity is 10.5%, derived from a beta of 1.36 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.3%. The capital structure is 88.9% equity and 11.1% debt.

Interpretation

A WACC of 9.8% is moderate, reflecting the market's balanced risk assessment of Village Farms International, Inc. Common Shares.

Investors can compare VFF's WACC of 9.8% against industry peers to gauge its relative financing costs. A beta of 1.36 reflects the stock's volatility relative to the broader market.

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VALUATION

VFF WACC: 9.78% for Village Farms International, Inc. Common Shares

Current inputs imply a 10.47% cost of equity and a 5.48% 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

Village Farms International, Inc. Common Shares Common Stock (VFF) WACC Results
Weighted Average Cost of Capital
9.78%
Cost of Equity
10.47%
Risk-Free Rate5.22%
Beta1.36
Market Risk Premium4.23%
Cost of Debt
4.33%
Pre-Tax Cost of Debt5.48%
Tax Rate21.00%
Tax Shield1.15%
Capital Structure
Equity: 88.91%($320.39M)
Debt: 11.09%($39.96M)
Equity Component
9.30%
88.91% × 10.47%
Debt Component
0.48%
11.09% × 4.33%

Village Farms International, Inc. Common Shares (VFF) WACC in context

Village Farms International, Inc. Common Shares (VFF) currently screens with an estimated WACC of 9.78%. That blends a 10.47% cost of equity, a 5.48% pre-tax cost of debt, and a 88.91% 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 VFF WACC implies

A 9.78% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates VFF

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.36 and equity accounts for 88.91% 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.