FAS.L WACC - Weighted Average Cost of Capital
The WACC of Fidelity Asian Values PLC (FAS.L) is 8.2%.
| Range | Selected | |
| Cost of equity | 10.4% - 13.9% | 12.15% |
| Tax rate | 1.9% - 2.7% | 2.3% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.2% - 9.1% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 1.4 | 1.57 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.4% | 13.9% |
| Tax rate | 1.9% | 2.7% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.2% | 9.1% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FAS.L | Fidelity Asian Values PLC | 1.1 | 0.76 | 0.37 |
| ADIG.L | Aberdeen Diversified Income and Growth Trust PLC | 1.06 | 0.62 | 0.3 |
| AEMC.L | Aberdeen Emerging Markets Investment Company Ltd | 0.04 | 0.78 | 0.75 |
| BUT.L | Brunner Investment Trust PLC | 0.06 | 0.91 | 0.86 |
| HEFT.L | Henderson European Focus Trust PLC | 0.05 | 1.09 | 1.04 |
| HINT.L | Henderson International Income Trust PLC | 0.07 | 1.01 | 0.94 |
| JMI.L | JPmorgan Smaller Companies Investment Trust PLC | 0.12 | 1.68 | 1.5 |
| JPEI.L | Jpmorgan Elect PLC | 0.02 | 1.15 | 1.13 |
| JSGI.L | JPMorgan Japan Small Cap Growth & Income PLC | 0.1 | 0.58 | 0.53 |
| NAIT.L | North American Income Trust PLC | 0.1 | 1.13 | 1.03 |
| SWEF.L | Starwood European Real Estate Finance Ltd | 1.19 | 0.59 | 0.27 |
| Low | High | |
| Unlevered beta | 0.75 | 0.94 |
| Relevered beta | 1.6 | 1.85 |
| Adjusted relevered beta | 1.4 | 1.57 |
FAS.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 FAS.L:
cost_of_equity (12.15%) = risk_free_rate (3.15%) + equity_risk_premium (5.80%) * adjusted_beta (1.4) + 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.