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    • FCD.UN.TO
    Firm Capital Property Trust
    Price:  
    6.04 
    CAD
    Volume:  
    5,817
    Canada | Equity Real Estate Investment Trusts (REITs)
    ValuationOverviewFinancialsForecastCompareHistorical PriceDividendsTransactionsPeople
    Valuation Summary
    Discounted Cash Flow
    Trading Multiples
    Peter Lynch Fair Value
    Earnings Power Value
    Dividend Discount Model
    WACC
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    FCD.UN.TO WACC - Weighted Average Cost of Capital

    The WACC of Firm Capital Property Trust (FCD.UN.TO) is 5.6%.

    The Cost of Equity of Firm Capital Property Trust (FCD.UN.TO) is 8.05%.
    The Cost of Debt of Firm Capital Property Trust (FCD.UN.TO) is 5.45%.

    RangeSelected
    Cost of equity6.4% - 9.7%8.05%
    Tax rate25.9% - 26.5%26.2%
    Cost of debt4.1% - 6.8%5.45%
    WACC4.4% - 6.9%5.6%
    WACC

    FCD.UN.TO WACC calculation

    CategoryLowHigh
    Long-term bond rate3.2%3.7%
    Equity market risk premium5.1%6.1%
    Adjusted beta0.640.9
    Additional risk adjustments0.0%0.5%
    Cost of equity6.4%9.7%
    Tax rate25.9%26.5%
    Debt/Equity ratio
    		1.51.5
    Cost of debt4.1%6.8%
    After-tax WACC4.4%6.9%
    Selected WACC5.6%

    FCD.UN.TO'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 FCD.UN.TO:

    cost_of_equity (8.05%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.64) + 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.