FTE.WA WACC - Weighted Average Cost of Capital

The WACC of Fabryki Mebli Forte SA (FTE.WA) is 11.3%.

The Cost of Equity of Fabryki Mebli Forte SA (FTE.WA) is 12.80%.

The Cost of Debt of Fabryki Mebli Forte SA (FTE.WA) is 14.75%.

	Range	Selected
Cost of equity	11.00% - 14.60%	12.80%
Tax rate	35.80% - 41.70%	38.75%
Cost of debt	4.00% - 25.50%	14.75%
WACC	7.9% - 14.7%	11.3%

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	0.87	1.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.00%	14.60%

Tax rate	35.80%	41.70%
Debt/Equity ratio	0.58	0.58
Cost of debt	4.00%	25.50%

After-tax WACC	7.9%	14.7%


Selected WACC	11.3%

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 (12.80%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.87) + 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.