FSY.TO WACC - Weighted Average Cost of Capital

The WACC of Forsys Metals Corp (FSY.TO) is 8.1%.

The Cost of Equity of Forsys Metals Corp (FSY.TO) is 11.25%.

The Cost of Debt of Forsys Metals Corp (FSY.TO) is 5.00%.

	Range	Selected
Cost of equity	7.70% - 14.80%	11.25%
Tax rate	0.60% - 1.40%	1.00%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.3% - 9.8%	8.1%

WACC

FSY.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.89	1.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	14.80%

Tax rate	0.60%	1.40%
Debt/Equity ratio	1	1
Cost of debt	5.00%	5.00%

After-tax WACC	6.3%	9.8%


Selected WACC	8.1%

FSY.TO'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 FSY.TO:

cost_of_equity (11.25%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.89) + 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.