The WACC of Fusion Interactive Corp (FUIG) is 3.8%.
Range | Selected | |
Cost of equity | 5.4% - 330.8% | 168.1% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 3.7% - 4.0% | 3.8% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.33 | 58.2 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.4% | 330.8% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 1053.12 | 1053.12 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 3.7% | 4.0% |
Selected WACC | 3.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
FUIG | Fusion Interactive Corp | 1053.12 | 0 | 0 |
ABWN | Airborne Wireless Network | 200.76 | 0 | 0 |
DTGI | Digerati Technologies Inc | 14.56 | 1.84 | 0.16 |
INTEQ | Intelsat SA | 2643.91 | -2.06 | 0 |
LBTYA | Liberty Global PLC | 2.64 | 0.3 | 0.1 |
LILA | Liberty Latin America Ltd | 6.23 | 0.71 | 0.13 |
PVSP | Pervasip Corp | 5.98 | 0.82 | 0.15 |
SGRB | SigmaBroadband Co | 1.41 | -1.23 | -0.61 |
SIFY | Sify Technologies Ltd | 0.94 | 0.33 | 0.19 |
Low | High | |
Unlevered beta | 0.02 | 0.12 |
Relevered beta | 0 | 86.37 |
Adjusted relevered beta | 0.33 | 58.2 |
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 FUIG:
cost_of_equity (168.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.