FMG.AX
Fortescue Metals Group Ltd
Price:  
20.10 
AUD
Volume:  
16,933,520.00
Australia | Metals & Mining
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FMG.AX WACC - Weighted Average Cost of Capital

The WACC of Fortescue Metals Group Ltd (FMG.AX) is 8.8%.

The Cost of Equity of Fortescue Metals Group Ltd (FMG.AX) is 9.45%.
The Cost of Debt of Fortescue Metals Group Ltd (FMG.AX) is 5.50%.

Range Selected
Cost of equity 7.70% - 11.20% 9.45%
Tax rate 30.00% - 30.20% 30.10%
Cost of debt 4.00% - 7.00% 5.50%
WACC 7.1% - 10.5% 8.8%
WACC

FMG.AX WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.72 1.01
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 11.20%
Tax rate 30.00% 30.20%
Debt/Equity ratio 0.13 0.13
Cost of debt 4.00% 7.00%
After-tax WACC 7.1% 10.5%
Selected WACC 8.8%