FTF.L WACC - Weighted Average Cost of Capital
The WACC of Foresight 4 VCT PLC (FTF.L) is 8.1%.
| Range | Selected | |
| Cost of equity | 10.7% - 13.6% | 12.15% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.4% - 8.8% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.12 | 1.23 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.7% | 13.6% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.4% | 8.8% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FTF.L | Foresight 4 VCT PLC | 1.02 | 0.02 | 0.01 |
| A7A.DE | Finlab AG | 0.15 | 0.83 | 0.74 |
| ALIDS.PA | Idsud SA | 0.04 | 0.12 | 0.12 |
| BHI.L | BMO UK High Income Trust PLC | 0.08 | 1.05 | 0.98 |
| BPC.WA | Black Pearl SA | 0.02 | 0.54 | 0.53 |
| EVLI.HE | Evli Pankki Oyj | 0.22 | 0.54 | 0.46 |
| HPBK.DE | Heliad Equity Partners GmbH & Co KGaA | 0.24 | 0.88 | 0.74 |
| HUBVC.IS | Hub Girisim Sermayesi Yatirim Ortakligi AS | 0 | 0.51 | 0.51 |
| ISGSY.IS | Is Girisim Sermayesi Yatirim Ortakligi AS | 0 | 0.8 | 0.8 |
| MIGO.L | Miton Global Opportunities PLC | 0.08 | 0.78 | 0.73 |
| YESIL.IS | Yesil Yatirim Holding AS | 0.01 | 1.6 | 1.59 |
| Low | High | |
| Unlevered beta | 0.53 | 0.74 |
| Relevered beta | 1.18 | 1.34 |
| Adjusted relevered beta | 1.12 | 1.23 |
FTF.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 FTF.L:
cost_of_equity (12.15%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.12) + 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.