FEN.L
Frenkel Topping Group PLC
Price:  
47.50 
GBP
Volume:  
31,431.00
United Kingdom | Capital Markets
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FEN.L WACC - Weighted Average Cost of Capital

The WACC of Frenkel Topping Group PLC (FEN.L) is 7.0%.

The Cost of Equity of Frenkel Topping Group PLC (FEN.L) is 7.05%.
The Cost of Debt of Frenkel Topping Group PLC (FEN.L) is 5.15%.

Range Selected
Cost of equity 6.10% - 8.00% 7.05%
Tax rate 24.00% - 25.40% 24.70%
Cost of debt 4.60% - 5.70% 5.15%
WACC 6.0% - 7.9% 7.0%
WACC

FEN.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.35 0.43
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 8.00%
Tax rate 24.00% 25.40%
Debt/Equity ratio 0.03 0.03
Cost of debt 4.60% 5.70%
After-tax WACC 6.0% 7.9%
Selected WACC 7.0%

FEN.L'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 FEN.L:

cost_of_equity (7.05%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.35) + 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.