FOYRK.AT WACC - Weighted Average Cost of Capital

The WACC of Fourlis SA (FOYRK.AT) is 9.7%.

The Cost of Equity of Fourlis SA (FOYRK.AT) is 9.50%.

The Cost of Debt of Fourlis SA (FOYRK.AT) is 11.00%.

	Range	Selected
Cost of equity	8.20% - 10.80%	9.50%
Tax rate	7.20% - 13.30%	10.25%
Cost of debt	6.90% - 15.10%	11.00%
WACC	7.2% - 12.1%	9.7%

WACC

FOYRK.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.56	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	10.80%

Tax rate	7.20%	13.30%
Debt/Equity ratio	1.44	1.44
Cost of debt	6.90%	15.10%

After-tax WACC	7.2%	12.1%


Selected WACC	9.7%

FOYRK.AT'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 FOYRK.AT:

cost_of_equity (9.50%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.56) + 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.