Agraflora Organics International Inc (AGRA.CN) WACC Analysis

As of May 31, 2025, Agraflora Organics International Inc (AGRA.CN) carries a Weighted Average Cost of Capital (WACC) of 4.1%. WACC reflects the blended rate Agraflora Organics International Inc must pay to both equity and debt holders.

Within that, the cost of equity is 11.0%, the cost of debt is 5.0%, and the effective tax rate is 25.9%.

Breakdown of WACC Components

• Long-term bond rate: 3.6% – 4.1%
• Equity market risk premium: 5.5% – 6.5%
• Adjusted beta: 1.35 – 3.96
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 44.29

What It Means for Investors

With a selected WACC of 4.1%, Agraflora Organics International Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.