Village Farms International Inc (VFF.TO) WACC Analysis

As of May 22, 2025, Village Farms International Inc (VFF.TO) carries a Weighted Average Cost of Capital (WACC) of 7.6%. WACC reflects the blended rate Village Farms International Inc must pay to both equity and debt holders.

Within that, the cost of equity is 6.8%, the cost of debt is 5.7%, and the effective tax rate is 30.0%.

Breakdown of WACC Components

• Long-term bond rate: 3.4% – 3.9%
• Equity market risk premium: 4.7% – 5.7%
• Adjusted beta: 0.73 – 0.87
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.15

What It Means for Investors

With a selected WACC of 7.6%, Village Farms International Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.