FMBV WACC - Weighted Average Cost of Capital
The WACC of Full Motion Beverage Inc (FMBV) is 4.9%.
| Range | Selected | |
| Cost of equity | 10.7% - 14.3% | 12.5% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.6% - 5.1% | 4.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.49 | 1.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.7% | 14.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 6.43 | 6.43 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.6% | 5.1% |
| Selected WACC | 4.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FMBV | Full Motion Beverage Inc | 6.43 | 2.1 | 0.37 |
| CCEP | Coca-Cola European Partners PLC | 0.31 | 0.43 | 0.35 |
| CELH | Celsius Holdings Inc | 0 | 0.34 | 0.34 |
| GHMP | Good Hemp Inc | 0.7 | 0.38 | 0.25 |
| JSDA | Jones Soda Co | 0.01 | 1.23 | 1.22 |
| MLHC | M Line Holdings Inc | 3102.72 | 0 | 0 |
| MOJO | MOJO Organics Inc | 0.01 | 0.49 | 0.49 |
| NBEV | Newage Inc | 2.3 | 1.41 | 0.52 |
| REED | Reed's Inc | 0.51 | 0.33 | 0.24 |
| TNY.CN | Tinley Beverage Company Inc | 0.37 | -0.54 | -0.42 |
| Low | High | |
| Unlevered beta | 0.31 | 0.36 |
| Relevered beta | 1.73 | 2.03 |
| Adjusted relevered beta | 1.49 | 1.69 |
FMBV'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 FMBV:
cost_of_equity (12.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.49) + 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.