4FM.WA WACC - Weighted Average Cost of Capital

The WACC of 4Fun Media SA (4FM.WA) is 10.8%.

The Cost of Equity of 4Fun Media SA (4FM.WA) is 12.75%.

The Cost of Debt of 4Fun Media SA (4FM.WA) is 8.65%.

	Range	Selected
Cost of equity	11.40% - 14.10%	12.75%
Tax rate	10.90% - 16.90%	13.90%
Cost of debt	8.30% - 9.00%	8.65%
WACC	10.0% - 11.7%	10.8%

WACC

4FM.WA WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	5.6%	6.6%
Adjusted beta	0.75	0.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	14.10%

Tax rate	10.90%	16.90%
Debt/Equity ratio	0.57	0.57
Cost of debt	8.30%	9.00%

After-tax WACC	10.0%	11.7%


Selected WACC	10.8%

4FM.WA's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for 4FM.WA:

cost_of_equity (12.75%) = risk_free_rate (7.45%) + equity_risk_premium (6.10%) * adjusted_beta (0.75) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.