FTE.WA WACC - Weighted Average Cost of Capital

The WACC of Fabryki Mebli Forte SA (FTE.WA) is 6.9%.

The Cost of Equity of Fabryki Mebli Forte SA (FTE.WA) is 10.30%.

The Cost of Debt of Fabryki Mebli Forte SA (FTE.WA) is 5.75%.

	Range	Selected
Cost of equity	8.70% - 11.90%	10.30%
Tax rate	28.00% - 34.60%	31.30%
Cost of debt	4.50% - 7.00%	5.75%
WACC	5.8% - 8.0%	6.9%

WACC

FTE.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.5	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	11.90%

Tax rate	28.00%	34.60%
Debt/Equity ratio	1.15	1.15
Cost of debt	4.50%	7.00%

After-tax WACC	5.8%	8.0%


Selected WACC	6.9%

FTE.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 FTE.WA:

cost_of_equity (10.30%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.5) + 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.