FCONSUMER.NS WACC - Weighted Average Cost of Capital

The WACC of Future Consumer Ltd (FCONSUMER.NS) is 17.7%.

The Cost of Equity of Future Consumer Ltd (FCONSUMER.NS) is 44.20%.

The Cost of Debt of Future Consumer Ltd (FCONSUMER.NS) is 11.30%.

	Range	Selected
Cost of equity	40.70% - 47.70%	44.20%
Tax rate	1.30% - 1.80%	1.55%
Cost of debt	4.00% - 18.60%	11.30%
WACC	11.3% - 24.2%	17.7%

WACC

FCONSUMER.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	4.08	4.28

Additional risk adjustments	0.0%	0.5%
Cost of equity	40.70%	47.70%

Tax rate	1.30%	1.80%
Debt/Equity ratio	4.03	4.03
Cost of debt	4.00%	18.60%

After-tax WACC	11.3%	24.2%


Selected WACC	17.7%

FCONSUMER.NS'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 FCONSUMER.NS:

cost_of_equity (44.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (4.08) + 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.