Whole Earth Brands Inc (FREE) WACC Analysis

As of May 27, 2025, Whole Earth Brands Inc (FREE) carries a Weighted Average Cost of Capital (WACC) of 15.4%. WACC reflects the blended rate Whole Earth Brands Inc must pay to both equity and debt holders.

Within that, the cost of equity is 5.0%, the cost of debt is 23.1%, and the effective tax rate is 11.9%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 0.25 – 0.34
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1.99

What It Means for Investors

With a selected WACC of 15.4%, Whole Earth Brands Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.