FBRT.TA WACC - Weighted Average Cost of Capital

The WACC of FMS Enterprises Migun Ltd (FBRT.TA) is 12.0%.

The Cost of Equity of FMS Enterprises Migun Ltd (FBRT.TA) is 12.00%.

The Cost of Debt of FMS Enterprises Migun Ltd (FBRT.TA) is 4.95%.

	Range	Selected
Cost of equity	10.80% - 13.20%	12.00%
Tax rate	17.30% - 17.90%	17.60%
Cost of debt	4.50% - 5.40%	4.95%
WACC	10.8% - 13.2%	12.0%

WACC

FBRT.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	5.6%	6.6%
Adjusted beta	1.07	1.11

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	13.20%

Tax rate	17.30%	17.90%
Debt/Equity ratio	0	0
Cost of debt	4.50%	5.40%

After-tax WACC	10.8%	13.2%


Selected WACC	12.0%

FBRT.TA'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 FBRT.TA:

cost_of_equity (12.00%) = risk_free_rate (5.05%) + equity_risk_premium (6.10%) * adjusted_beta (1.07) + 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.