FCEL
Fuelcell Energy Inc
Price:  
3.82 
USD
Volume:  
734,987.00
United States | Electrical Equipment
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FCEL WACC - Weighted Average Cost of Capital

The WACC of Fuelcell Energy Inc (FCEL) is 6.6%.

The Cost of Equity of Fuelcell Energy Inc (FCEL) is 8.50%.
The Cost of Debt of Fuelcell Energy Inc (FCEL) is 5.50%.

Range Selected
Cost of equity 6.80% - 10.20% 8.50%
Tax rate -% - 0.20% 0.10%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.1% - 8.2% 6.6%
WACC

FCEL WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.63 0.96
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 10.20%
Tax rate -% 0.20%
Debt/Equity ratio 1.63 1.63
Cost of debt 4.00% 7.00%
After-tax WACC 5.1% 8.2%
Selected WACC 6.6%

FCEL'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 FCEL:

cost_of_equity (8.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.63) + 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.