FTSV.L WACC - Weighted Average Cost of Capital
The WACC of Foresight Solar & Technology VCT PLC (FTSV.L) is 7.3%.
| Range | Selected | |
| Cost of equity | 8.9% - 12.2% | 10.55% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.5% - 8.1% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 4.4% | 4.9% |
| Equity market risk premium | 6.4% | 7.4% |
| Adjusted beta | 0.7 | 0.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.9% | 12.2% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.5% | 8.1% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FTSV.L | Foresight Solar & Technology VCT PLC | 0.96 | 0.34 | 0.19 |
| AIQ.L | AIQ Ltd | 0.25 | 0.51 | 0.42 |
| BLP.L | Blue Planet Investment Trust PLC | 0.32 | 0.52 | 0.41 |
| BRES.L | Blencowe Resources PLC | 0.09 | -0.3 | -0.28 |
| BRIG.L | Blackrock Income and Growth Investment Trust PLC | 0.1 | 0.91 | 0.84 |
| CGO.L | Contango Holdings PLC | 0.58 | 0.22 | 0.15 |
| GV1O.L | Gresham House Renewable Energy VCT 1 PLC | 0.12 | -0.05 | -0.05 |
| TAYN.PA | Societe de Tayninh SA | 0 | 0.24 | 0.24 |
| Low | High | |
| Unlevered beta | 0.18 | 0.28 |
| Relevered beta | 0.55 | 0.87 |
| Adjusted relevered beta | 0.7 | 0.91 |
FTSV.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 FTSV.L:
cost_of_equity (10.55%) = risk_free_rate (4.65%) + equity_risk_premium (6.90%) * adjusted_beta (0.7) + 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.