FLDM
Fluidigm Corp
Price:  
3.71 
USD
Volume:  
532,537
United States | Life Sciences Tools & Services

FLDM WACC - Weighted Average Cost of Capital

The WACC of Fluidigm Corp (FLDM) is 7.1%.

The Cost of Equity of Fluidigm Corp (FLDM) is 7.55%.
The Cost of Debt of Fluidigm Corp (FLDM) is 5.55%.

RangeSelected
Cost of equity6.0% - 9.1%7.55%
Tax rate3.5% - 4.4%3.95%
Cost of debt4.1% - 7.0%5.55%
WACC5.6% - 8.6%7.1%
WACC

FLDM WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium4.2%5.2%
Adjusted beta0.670.94
Additional risk adjustments0.0%0.5%
Cost of equity6.0%9.1%
Tax rate3.5%4.4%
Debt/Equity ratio
0.250.25
Cost of debt4.1%7.0%
After-tax WACC5.6%8.6%
Selected WACC7.1%

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.