FRDN.TA WACC - Weighted Average Cost of Capital

The WACC of Fridenson Logistic Services Ltd (FRDN.TA) is 6.8%.

The Cost of Equity of Fridenson Logistic Services Ltd (FRDN.TA) is 9.30%.

The Cost of Debt of Fridenson Logistic Services Ltd (FRDN.TA) is 5.00%.

	Range	Selected
Cost of equity	7.80% - 10.80%	9.30%
Tax rate	26.50% - 28.90%	27.70%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.0% - 7.6%	6.8%

WACC

FRDN.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.48	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	10.80%

Tax rate	26.50%	28.90%
Debt/Equity ratio	0.8	0.8
Cost of debt	5.00%	5.00%

After-tax WACC	6.0%	7.6%


Selected WACC	6.8%

FRDN.TA'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 FRDN.TA:

cost_of_equity (9.30%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.48) + 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.