The WACC of Fuelstream Inc (FLST) is 4.3%.
Range | Selected | |
Cost of equity | 11817.4% - 435717.4% | 223767.4% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 3.0% - 5.6% | 4.3% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 2568.15 | 77805.81 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 11817.4% | 435717.4% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 924791.86 | 924791.86 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 3.0% | 5.6% |
Selected WACC | 4.3% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
FLST | Fuelstream Inc | 924791.9 | 1.42 | 0 |
CAPL | Crossamerica Partners LP | 0.96 | 0.3 | 0.18 |
CEQP | Crestwood Equity Partners LP | 1.14 | 0.89 | 0.49 |
DLNG | Dynagas LNG Partners LP | 2.42 | -0.05 | -0.02 |
GEI.TO | Gibson Energy Inc | 0.67 | 1.04 | 0.7 |
KEY.TO | Keyera Corp | 0.39 | 0.68 | 0.53 |
NGL | NGL Energy Partners LP | 5.2 | 0.04 | 0.01 |
PTTN | Patten Energy Solutions Group Inc | 97.29 | -1.1 | -0.02 |
SRLP | Sprague Resources LP | 1.7 | 0.38 | 0.17 |
USDP | USD Partners LP | 1006.17 | 1.15 | 0 |
Low | High | |
Unlevered beta | 0.01 | 0.17 |
Relevered beta | 3832.57 | 116127.58 |
Adjusted relevered beta | 2568.15 | 77805.81 |
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 FLST:
cost_of_equity (223,767.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2568.15) + 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.