FNM.ST WACC - Weighted Average Cost of Capital
The WACC of Ferronordic AB (FNM.ST) is 12.7%.
| Range | Selected | |
| Cost of equity | 7.9% - 15.1% | 11.5% |
| Tax rate | 25.3% - 29.5% | 27.4% |
| Cost of debt | 13.5% - 22.5% | 18% |
| WACC | 9.6% - 15.7% | 12.7% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.06 | 1.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 15.1% |
| Tax rate | 25.3% | 29.5% |
| Debt/Equity ratio | 3.5 | 3.5 |
| Cost of debt | 13.5% | 22.5% |
| After-tax WACC | 9.6% | 15.7% |
| Selected WACC | 12.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FNM.ST | Ferronordic AB | 3.5 | 0.24 | 0.07 |
| BERG B.ST | Bergman & Beving AB | 0.22 | 0.74 | 0.63 |
| BOW.WA | Bowim SA | 0.22 | 1 | 0.87 |
| ELTON.AT | Elton SA | 0.59 | 0.42 | 0.3 |
| GRN.WA | Grodno SA | 0.54 | 0.45 | 0.32 |
| INTEM.IS | Intema Insaat ve Tesisat Malzemeleri Yatirim ve Pazarlama AS | 0.03 | 1.59 | 1.55 |
| LTHM.L | James Latham PLC | 0.04 | 0.28 | 0.27 |
| OEM B.ST | OEM International AB | 0.01 | 0.73 | 0.73 |
| SANI.CO | Sanistaal A/S | 0.55 | 0.34 | 0.25 |
| TGSAS.IS | TGS Dis Ticaret AS | 0 | 0.85 | 0.85 |
| Low | High | |
| Unlevered beta | 0.31 | 0.67 |
| Relevered beta | 1.09 | 2.34 |
| Adjusted relevered beta | 1.06 | 1.9 |
FNM.ST'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 FNM.ST:
cost_of_equity (11.50%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (1.06) + 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.