FTE.WA WACC - Weighted Average Cost of Capital

The WACC of Fabryki Mebli Forte SA (FTE.WA) is 8.4%.

The Cost of Equity of Fabryki Mebli Forte SA (FTE.WA) is 9.90%.

The Cost of Debt of Fabryki Mebli Forte SA (FTE.WA) is 7.60%.

	Range	Selected
Cost of equity	8.80% - 11.00%	9.90%
Tax rate	28.00% - 34.60%	31.30%
Cost of debt	4.50% - 10.70%	7.60%
WACC	7.0% - 9.7%	8.4%

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	0.52	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	11.00%

Tax rate	28.00%	34.60%
Debt/Equity ratio	0.47	0.47
Cost of debt	4.50%	10.70%

After-tax WACC	7.0%	9.7%


Selected WACC	8.4%

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 (9.90%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.52) + 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.