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Blue Star Foods (Blue Star Foods) WACC % :39.02% (As of May. 24, 2024)


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What is Blue Star Foods WACC %?

As of today (2024-05-24), Blue Star Foods's weighted average cost of capital is 39.02%%. Blue Star Foods's ROIC % is -58.58% (calculated using TTM income statement data). Blue Star Foods earns returns that do not match up to its cost of capital. It will destroy value as it grows.

For a comprehensive WACC calculation, please access the WACC Calculator.


Blue Star Foods WACC % Historical Data

The historical data trend for Blue Star Foods's WACC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Blue Star Foods WACC % Chart

Blue Star Foods Annual Data
Trend Oct17 Oct18 Dec19 Dec20 Dec21 Dec22 Dec23
WACC %
Get a 7-Day Free Trial 11.05 7.37 7.51 15.36 34.23

Blue Star Foods Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
WACC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.68 23.84 38.60 34.23 39.78

Competitive Comparison of Blue Star Foods's WACC %

For the Packaged Foods subindustry, Blue Star Foods's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Blue Star Foods's WACC % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Blue Star Foods's WACC % distribution charts can be found below:

* The bar in red indicates where Blue Star Foods's WACC % falls into.



Blue Star Foods WACC % Calculation

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.

WACC=E/(E + D)*Cost of Equity+D/(E + D)*Cost of Debt*(1 - Tax Rate)

1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Blue Star Foods's market capitalization (E) is $2.991 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2024, Blue Star Foods's latest one-year quarterly average Book Value of Debt (D) is $2.8054 Mil.
a) weight of equity = E / (E + D) = 2.991 / (2.991 + 2.8054) = 0.516
b) weight of debt = D / (E + D) = 2.8054 / (2.991 + 2.8054) = 0.484

2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.467%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Blue Star Foods's beta is 2.09.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.467% + 2.09 * 6% = 17.007%

3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2024, Blue Star Foods's interest expense (positive number) was $1.753 Mil. Its total Book Value of Debt (D) is $2.8054 Mil.
Cost of Debt = 1.753 / 2.8054 = 62.4866%.

4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 0 / -3.614 = 0%.

Blue Star Foods's Weighted Average Cost Of Capital (WACC) for Today is calculated as:

WACC=E / (E + D)*Cost of Equity+D / (E + D)*Cost of Debt*(1 - Tax Rate)
=0.516*17.007%+0.484*62.4866%*(1 - 0%)
=39.02%

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Blue Star Foods  (NAS:BSFC) WACC % Explanation

Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Blue Star Foods's weighted average cost of capital is 39.02%%. Blue Star Foods's ROIC % is -58.58% (calculated using TTM income statement data). Blue Star Foods earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Be Aware

1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.

2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.

3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.

4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.


Related Terms

Blue Star Foods (Blue Star Foods) Business Description

Traded in Other Exchanges
N/A
Address
3000 NW,109th Avenue, Miami, FL, USA, 33172
Blue Star Foods Corp is an international seafood company based in Miami. It imports, packages, and sells refrigerated pasteurized crab meat, and other premium seafood products. The company derives revenue from importing blue and red swimming crab meat from Indonesia, Philippines and China and distributing it in the United States and Canada under several premium brand names such as Blue Star, Oceanica, Pacifika, Crab & Go, First Choice, Good Stuff and Coastal Pride Fresh. The Company's products are sold in the United States and Canada.
Executives
Nubar Herian director 1120 NW 165TH STREET, MIAMI FL 33169
Jeffrey J Guzy director 3130 19TH STREET, NORTH, ARLINGTON VA 22201
Trond K. Ringstad director 1511 THIRD AVENUE, SUITE 788, SEATTLE WA 98101
John R Keeler director, 10 percent owner, officer: Executive Chairman 3000 NW 109TH AVE, MIAMI FL 33172
Juan Carlos Dalto director 3059 TOWNSGATE ROAD, WESTLAKE VILLAGE CA 91361
Miozotis Ponce officer: Chief Operating Officer 3000 NW 109 AVENUE, MIAMI FL 33172
Silvia Sosa Alana officer: Chief Financial Officer 3000 NW 109 AVENUE, MIAMI FL 33172
Timothy Andrew Mclellan director 11016 MILL CREEK WAY, #2407, FORT MYERS FL 33913
Christopher Constable director, officer: CFO, Treasurer and Secretary 3000 NW 109TH AVE, MIAMI FL 33172
Carlos Faria director, 10 percent owner, officer: President and CEO 3000 NW 109TH AVE, MIAMI FL 33172
Laura E Anthony director, 10 percent owner, officer: Former CFO Director+10% Holder LAURA ANTHONY, 120 S. OLIVE AVE, WEST PALM BEACH FL 33401
Howard Gostfrand director, 10 percent owner, officer: Former CEO Director+10% Holder 625 N. FLAGLER DRIVE, SUITE 600, WEST PALM BEACH FL 33401