FA.L
Fireangel Safety Technology Group PLC
Price:  
7.25 
GBP
Volume:  
30,682.00
United Kingdom | Household Durables
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FA.L WACC - Weighted Average Cost of Capital

The WACC of Fireangel Safety Technology Group PLC (FA.L) is 6.9%.

The Cost of Equity of Fireangel Safety Technology Group PLC (FA.L) is 7.30%.
The Cost of Debt of Fireangel Safety Technology Group PLC (FA.L) is 6.25%.

Range Selected
Cost of equity 6.10% - 8.50% 7.30%
Tax rate 9.70% - 12.80% 11.25%
Cost of debt 5.50% - 7.00% 6.25%
WACC 5.9% - 7.9% 6.9%
WACC

FA.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.36 0.5
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 8.50%
Tax rate 9.70% 12.80%
Debt/Equity ratio 0.31 0.31
Cost of debt 5.50% 7.00%
After-tax WACC 5.9% 7.9%
Selected WACC 6.9%

FA.L'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 FA.L:

cost_of_equity (7.30%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.36) + 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.