FFG.AX WACC - Weighted Average Cost of Capital
The WACC of Fatfish Group Ltd (FFG.AX) is 6.0%.
| Range | Selected | |
| Cost of equity | 6.5% - 8.3% | 7.4% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 4.0% - 4.7% | 4.35% |
| WACC | 5.3% - 6.8% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.48 | 0.54 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 8.3% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.46 | 0.46 |
| Cost of debt | 4.0% | 4.7% |
| After-tax WACC | 5.3% | 6.8% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FFG.AX | Fatfish Group Ltd | 0.46 | 2.09 | 1.59 |
| ASW.AX | Advanced Share Registry Ltd | 0.01 | 0.3 | 0.3 |
| AVC.AX | Auctus Investment Group Ltd | 0.05 | 0.17 | 0.16 |
| CGA.AX | Contango Asset Management Ltd | 0.08 | 1.1 | 1.04 |
| CIW.AX | Clime Investment Management Ltd | 0.02 | 0.13 | 0.12 |
| CVC.AX | CVC Ltd | 0.35 | -0.27 | -0.22 |
| KBC.AX | Keybridge Capital Ltd | 0.16 | 0.22 | 0.2 |
| MAM.AX | Microequities Asset Management Group Ltd | 0.08 | 1.31 | 1.24 |
| PAC.AX | Pacific Current Group Ltd | 0.18 | 0.19 | 0.17 |
| TIP.AX | Teaminvest Private Group Ltd | 0.44 | -0.34 | -0.26 |
| Low | High | |
| Unlevered beta | 0.17 | 0.24 |
| Relevered beta | 0.22 | 0.31 |
| Adjusted relevered beta | 0.48 | 0.54 |
FFG.AX'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 FFG.AX:
cost_of_equity (7.40%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.48) + 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.