FIER.AT WACC - Weighted Average Cost of Capital

The WACC of Fieratex SA (FIER.AT) is 6.8%.

The Cost of Equity of Fieratex SA (FIER.AT) is 8.65%.

The Cost of Debt of Fieratex SA (FIER.AT) is 7.20%.

	Range	Selected
Cost of equity	6.60% - 10.70%	8.65%
Tax rate	18.30% - 20.60%	19.45%
Cost of debt	7.00% - 7.40%	7.20%
WACC	6.0% - 7.6%	6.8%

WACC

FIER.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.37	0.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	10.70%

Tax rate	18.30%	20.60%
Debt/Equity ratio	1.72	1.72
Cost of debt	7.00%	7.40%

After-tax WACC	6.0%	7.6%


Selected WACC	6.8%

FIER.AT'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 FIER.AT:

cost_of_equity (8.65%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.37) + 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.