F51.WA
Farm 51 Group SA
Price:  
7.46 
PLN
Volume:  
8,164.00
Poland | Entertainment
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F51.WA WACC - Weighted Average Cost of Capital

The WACC of Farm 51 Group SA (F51.WA) is 7.3%.

The Cost of Equity of Farm 51 Group SA (F51.WA) is 10.00%.
The Cost of Debt of Farm 51 Group SA (F51.WA) is 5.00%.

Range Selected
Cost of equity 8.50% - 11.50% 10.00%
Tax rate 3.40% - 8.80% 6.10%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.6% - 8.0% 7.3%
WACC

F51.WA WACC calculation

Category Low High
Long-term bond rate 5.5% 6.0%
Equity market risk premium 6.3% 7.3%
Adjusted beta 0.47 0.67
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.50% 11.50%
Tax rate 3.40% 8.80%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 6.6% 8.0%
Selected WACC 7.3%

F51.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 F51.WA:

cost_of_equity (10.00%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.47) + 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.