FDY.CN WACC - Weighted Average Cost of Capital
The WACC of Faraday Copper Corp (FDY.CN) is 10.1%.
| Range | Selected | |
| Cost of equity | 15.0% - 18.1% | 16.55% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.4% - 10.9% | 10.1% |
| Category | Low | High |
| Long-term bond rate | 3.6% | 4.1% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 2.08 | 2.08 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.0% | 18.1% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.4% | 10.9% |
| Selected WACC | 10.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FDY.CN | Faraday Copper Corp | 0.85 | 1.52 | 0.93 |
| Low | High | |
| Unlevered beta | 0.93 | 0.93 |
| Relevered beta | 2.61 | 2.61 |
| Adjusted relevered beta | 2.08 | 2.08 |
FDY.CN'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 FDY.CN:
cost_of_equity (16.55%) = risk_free_rate (3.85%) + equity_risk_premium (6.00%) * adjusted_beta (2.08) + 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.