FSG.WA WACC - Weighted Average Cost of Capital

The WACC of Fabryki Sprzetu i Narzedzi Gorniczych Grupa Kapitalowa Fasing SA (FSG.WA) is 6.8%.

The Cost of Equity of Fabryki Sprzetu i Narzedzi Gorniczych Grupa Kapitalowa Fasing SA (FSG.WA) is 10.15%.

The Cost of Debt of Fabryki Sprzetu i Narzedzi Gorniczych Grupa Kapitalowa Fasing SA (FSG.WA) is 7.00%.

	Range	Selected
Cost of equity	9.00% - 11.30%	10.15%
Tax rate	22.90% - 32.10%	27.50%
Cost of debt	6.70% - 7.30%	7.00%
WACC	6.5% - 7.1%	6.8%

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	0.55	0.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	11.30%

Tax rate	22.90%	32.10%
Debt/Equity ratio	1.95	1.95
Cost of debt	6.70%	7.30%

After-tax WACC	6.5%	7.1%


Selected WACC	6.8%

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 (10.15%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.55) + 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.