FIBIH.TA WACC - Weighted Average Cost of Capital

The WACC of FIBI Holdings Ltd (FIBIH.TA) is 7.3%.

The Cost of Equity of FIBI Holdings Ltd (FIBIH.TA) is 10.85%.

The Cost of Debt of FIBI Holdings Ltd (FIBIH.TA) is 5.00%.

	Range	Selected
Cost of equity	9.60% - 12.10%	10.85%
Tax rate	34.20% - 34.70%	34.45%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.6% - 7.9%	7.3%

WACC

FIBIH.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.77	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	12.10%

Tax rate	34.20%	34.70%
Debt/Equity ratio	0.89	0.89
Cost of debt	5.00%	5.00%

After-tax WACC	6.6%	7.9%


Selected WACC	7.3%

FIBIH.TA'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 FIBIH.TA:

cost_of_equity (10.85%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.77) + 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.