FSG.WA WACC - Weighted Average Cost of Capital

The WACC of Fabryki Sprzetu i Narzedzi Gorniczych Grupa Kapitalowa Fasing SA (FSG.WA) is 7.5%.

The Cost of Equity of Fabryki Sprzetu i Narzedzi Gorniczych Grupa Kapitalowa Fasing SA (FSG.WA) is 11.40%.

The Cost of Debt of Fabryki Sprzetu i Narzedzi Gorniczych Grupa Kapitalowa Fasing SA (FSG.WA) is 7.20%.

	Range	Selected
Cost of equity	8.60% - 14.20%	11.40%
Tax rate	21.80% - 32.10%	26.95%
Cost of debt	6.70% - 7.70%	7.20%
WACC	6.5% - 8.5%	7.5%

WACC

FSG.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.49	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.60%	14.20%

Tax rate	21.80%	32.10%
Debt/Equity ratio	1.77	1.77
Cost of debt	6.70%	7.70%

After-tax WACC	6.5%	8.5%


Selected WACC	7.5%

FSG.WA'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 FSG.WA:

cost_of_equity (11.40%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.49) + 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.