FRU.DE WACC - Weighted Average Cost of Capital
The WACC of Ferratum Oyj (FRU.DE) is 5.3%.
| Range | Selected | |
| Cost of equity | 6.6% - 12.5% | 9.55% |
| Tax rate | 15.2% - 17.7% | 16.45% |
| Cost of debt | 4.0% - 6.4% | 5.2% |
| WACC | 4.0% - 6.6% | 5.3% |
| Category | Low | High |
| Long-term bond rate | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.74 | 1.42 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 12.5% |
| Tax rate | 15.2% | 17.7% |
| Debt/Equity ratio | 4.48 | 4.48 |
| Cost of debt | 4.0% | 6.4% |
| After-tax WACC | 4.0% | 6.6% |
| Selected WACC | 5.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FRU.DE | Ferratum Oyj | 4.48 | 1.27 | 0.27 |
| APP.L | Appreciate Group PLC | 0.07 | 1.29 | 1.21 |
| B2H.OL | B2holding ASA | 4.17 | 0.4 | 0.09 |
| CNF.MI | Conafi Prestito SpA | 0.2 | 0.25 | 0.21 |
| DDM.ST | DDM Holding AG | 7.29 | 0.06 | 0.01 |
| HAT.L | H & T Group PLC | 0.32 | 0.62 | 0.49 |
| HOFI.ST | Hoist Finance AB (publ) | 5.88 | 0.72 | 0.12 |
| MCL.L | Morses Club PLC | 48.49 | 2.08 | 0.05 |
| MOL.MI | Gruppo MutuiOnline SpA | 0.17 | 0.68 | 0.59 |
| TSL.L | Thinksmart Ltd | 0 | 0.83 | 0.83 |
| Low | High | |
| Unlevered beta | 0.18 | 0.36 |
| Relevered beta | 0.61 | 1.63 |
| Adjusted relevered beta | 0.74 | 1.42 |
FRU.DE'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 FRU.DE:
cost_of_equity (9.55%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (0.74) + 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.