FMF.WA WACC - Weighted Average Cost of Capital

The WACC of Famur SA (FMF.WA) is 9.0%.

The Cost of Equity of Famur SA (FMF.WA) is 11.75%.

The Cost of Debt of Famur SA (FMF.WA) is 5.60%.

	Range	Selected
Cost of equity	10.30% - 13.20%	11.75%
Tax rate	25.00% - 32.50%	28.75%
Cost of debt	4.00% - 7.20%	5.60%
WACC	7.7% - 10.2%	9.0%

WACC

FMF.WA WACC calculation

Category	Low	High

Long-term bond rate	5.6%	6.1%
Equity market risk premium	6.8%	7.8%
Adjusted beta	0.69	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	13.20%

Tax rate	25.00%	32.50%
Debt/Equity ratio	0.55	0.55
Cost of debt	4.00%	7.20%

After-tax WACC	7.7%	10.2%


Selected WACC	9.0%

FMF.WA'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 FMF.WA:

cost_of_equity (11.75%) = risk_free_rate (5.85%) + equity_risk_premium (7.30%) * adjusted_beta (0.69) + 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.