FSTA.L
Fuller Smith & Turner PLC
Price:  
582.00 
GBP
Volume:  
18,489.00
United Kingdom | Hotels, Restaurants & Leisure
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FSTA.L WACC - Weighted Average Cost of Capital

The WACC of Fuller Smith & Turner PLC (FSTA.L) is 7.0%.

The Cost of Equity of Fuller Smith & Turner PLC (FSTA.L) is 9.45%.
The Cost of Debt of Fuller Smith & Turner PLC (FSTA.L) is 4.60%.

Range Selected
Cost of equity 8.10% - 10.80% 9.45%
Tax rate 21.80% - 28.70% 25.25%
Cost of debt 4.00% - 5.20% 4.60%
WACC 6.1% - 7.9% 7.0%
WACC

FSTA.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.69 0.83
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.10% 10.80%
Tax rate 21.80% 28.70%
Debt/Equity ratio 0.69 0.69
Cost of debt 4.00% 5.20%
After-tax WACC 6.1% 7.9%
Selected WACC 7.0%

FSTA.L'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 FSTA.L:

cost_of_equity (9.45%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.69) + 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.