FLDM WACC - Weighted Average Cost of Capital
The WACC of Fluidigm Corp (FLDM) is 7.1%.
| Range | Selected | |
| Cost of equity | 6.0% - 9.1% | 7.55% |
| Tax rate | 3.5% - 4.4% | 3.95% |
| Cost of debt | 4.1% - 7.0% | 5.55% |
| WACC | 5.6% - 8.6% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 0.67 | 0.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 9.1% |
| Tax rate | 3.5% | 4.4% |
| Debt/Equity ratio | 0.25 | 0.25 |
| Cost of debt | 4.1% | 7.0% |
| After-tax WACC | 5.6% | 8.6% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FLDM | Fluidigm Corp | 0.25 | 1.16 | 0.94 |
| ARYC | Arrayit Corp | 1428.99 | -1 | 0 |
| HBIO | Harvard Bioscience Inc | 2.49 | 2.01 | 0.59 |
| INIS | International Isotopes Inc | 0.24 | 0.47 | 0.38 |
| IPA.V | Immunoprecise Antibodies Ltd | 0.02 | -0.15 | -0.15 |
| LMNX | Luminex Corp | 0.12 | 0.57 | 0.51 |
| PACB | Pacific Biosciences of California Inc | 2.34 | 0.22 | 0.07 |
| QGEN | Qiagen NV | 0.15 | 0.55 | 0.48 |
| TMO | Thermo Fisher Scientific Inc | 0.21 | 0.49 | 0.41 |
| WAT | Waters Corp | 0.08 | 0.52 | 0.49 |
| Low | High | |
| Unlevered beta | 0.4 | 0.48 |
| Relevered beta | 0.51 | 0.91 |
| Adjusted relevered beta | 0.67 | 0.94 |
FLDM'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 FLDM:
cost_of_equity (7.55%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (0.67) + 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.