FLX.L WACC - Weighted Average Cost of Capital

The WACC of Falanx Group Ltd (FLX.L) is 12.6%.

The Cost of Equity of Falanx Group Ltd (FLX.L) is 9.20%.

The Cost of Debt of Falanx Group Ltd (FLX.L) is 16.50%.

	Range	Selected
Cost of equity	7.90% - 10.50%	9.20%
Tax rate	0.10% - 0.20%	0.15%
Cost of debt	7.00% - 26.00%	16.50%
WACC	7.5% - 17.8%	12.6%

WACC

FLX.L WACC calculation

Category	Low	High

Long-term bond rate	4.4%	4.9%
Equity market risk premium	6.4%	7.4%
Adjusted beta	0.53	0.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	10.50%

Tax rate	0.10%	0.20%
Debt/Equity ratio	0.88	0.88
Cost of debt	7.00%	26.00%

After-tax WACC	7.5%	17.8%


Selected WACC	12.6%

FLX.L'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 FLX.L:

cost_of_equity (9.20%) = risk_free_rate (4.65%) + equity_risk_premium (6.90%) * adjusted_beta (0.53) + 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.