FNOVA17.MX WACC - Weighted Average Cost of Capital

The WACC of Proyectos Inmobiliarios Carne Mart SA de CV (FNOVA17.MX) is 12.4%.

The Cost of Equity of Proyectos Inmobiliarios Carne Mart SA de CV (FNOVA17.MX) is 13.60%.

The Cost of Debt of Proyectos Inmobiliarios Carne Mart SA de CV (FNOVA17.MX) is 8.50%.

	Range	Selected
Cost of equity	12.90% - 14.30%	13.60%
Tax rate	-% - -%	-%
Cost of debt	5.90% - 11.10%	8.50%
WACC	11.2% - 13.5%	12.4%

WACC

FNOVA17.MX WACC calculation

Category	Low	High

Long-term bond rate	10.1%	10.6%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.36	0.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.90%	14.30%

Tax rate	-%	-%
Debt/Equity ratio	0.32	0.32
Cost of debt	5.90%	11.10%

After-tax WACC	11.2%	13.5%


Selected WACC	12.4%

FNOVA17.MX'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 FNOVA17.MX:

cost_of_equity (13.60%) = risk_free_rate (10.35%) + equity_risk_premium (8.40%) * adjusted_beta (0.36) + 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.