FDR.MC WACC - Weighted Average Cost of Capital

The WACC of Fluidra SA (FDR.MC) is 9.1%.

The Cost of Equity of Fluidra SA (FDR.MC) is 10.85%.

The Cost of Debt of Fluidra SA (FDR.MC) is 4.75%.

	Range	Selected
Cost of equity	9.20% - 12.50%	10.85%
Tax rate	26.30% - 26.40%	26.35%
Cost of debt	4.30% - 5.20%	4.75%
WACC	7.7% - 10.5%	9.1%

WACC

FDR.MC WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.82	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.20%	12.50%

Tax rate	26.30%	26.40%
Debt/Equity ratio	0.32	0.32
Cost of debt	4.30%	5.20%

After-tax WACC	7.7%	10.5%


Selected WACC	9.1%

FDR.MC'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 FDR.MC:

cost_of_equity (10.85%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.82) + 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.