FDCT WACC - Weighted Average Cost of Capital
The WACC of FDCTECH Inc (FDCT) is 6.2%.
| Range | Selected | |
| Cost of equity | 5.3% - 7.8% | 6.55% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.1% - 7.3% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.31 | 0.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 7.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.1% | 7.3% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FDCT | FDCTECH Inc | 0.13 | -19.16 | -17.44 |
| AXE.V | Acceleware Ltd | 0.2 | -0.74 | -0.65 |
| BEW.V | Bewhere Holdings Inc | 0.01 | 0.39 | 0.39 |
| BLBX | Blackboxstocks Inc | 0.02 | 1.39 | 1.38 |
| EPAZ | Auto Dataflow Inc | 8.12 | 1.56 | 0.23 |
| FUND.V | Katipult Technology Corp | 7.48 | -0.52 | -0.08 |
| INTV | Integrated Ventures Inc | 0.32 | -0.09 | -0.07 |
| MBLV | Globex Holdings Corp | 15719.63 | 1.18 | 0 |
| MFH | Mercurity Fintech Holding Inc | 0.02 | 1.21 | 1.19 |
| ONE.V | 01 Communique Laboratory Inc | 0 | -1.61 | -1.61 |
| VENZ.V | Venzee Technologies Inc | 0.23 | 0.41 | 0.35 |
| Low | High | |
| Unlevered beta | -0.07 | 0.23 |
| Relevered beta | -0.03 | 0.3 |
| Adjusted relevered beta | 0.31 | 0.53 |
FDCT'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 FDCT:
cost_of_equity (6.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.31) + 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.