FUIG
Fusion Interactive Corp
Price:  
USD
Volume:  
12,540
United States | Diversified Telecommunication Services

FUIG WACC - Weighted Average Cost of Capital

The WACC of Fusion Interactive Corp (FUIG) is 3.8%.

The Cost of Equity of Fusion Interactive Corp (FUIG) is 168.1%.
The Cost of Debt of Fusion Interactive Corp (FUIG) is 5%.

RangeSelected
Cost of equity5.4% - 330.8%168.1%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.0% - 5.0%5%
WACC3.7% - 4.0%3.8%
WACC

FUIG WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.3358.2
Additional risk adjustments0.0%0.5%
Cost of equity5.4%330.8%
Tax rate26.2%27.0%
Debt/Equity ratio
1053.121053.12
Cost of debt5.0%5.0%
After-tax WACC3.7%4.0%
Selected WACC3.8%

FUIG'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 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.