FKA.VI WACC - Weighted Average Cost of Capital

The WACC of Frauenthal Holding AG (FKA.VI) is 7.4%.

The Cost of Equity of Frauenthal Holding AG (FKA.VI) is 7.40%.

The Cost of Debt of Frauenthal Holding AG (FKA.VI) is 9.30%.

	Range	Selected
Cost of equity	6.20% - 8.60%	7.40%
Tax rate	17.40% - 20.50%	18.95%
Cost of debt	4.00% - 14.60%	9.30%
WACC	4.9% - 10.0%	7.4%

WACC

FKA.VI WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.6	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	8.60%

Tax rate	17.40%	20.50%
Debt/Equity ratio	0.83	0.83
Cost of debt	4.00%	14.60%

After-tax WACC	4.9%	10.0%


Selected WACC	7.4%

FKA.VI'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 FKA.VI:

cost_of_equity (7.40%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (0.6) + 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.