FUL.L WACC - Weighted Average Cost of Capital

The WACC of Fulham Shore PLC (FUL.L) is 6.5%.

The Cost of Equity of Fulham Shore PLC (FUL.L) is 7.90%.

The Cost of Debt of Fulham Shore PLC (FUL.L) is 7.85%.

	Range	Selected
Cost of equity	6.90% - 8.90%	7.90%
Tax rate	28.30% - 41.70%	35.00%
Cost of debt	7.60% - 8.10%	7.85%
WACC	6.2% - 6.8%	6.5%

WACC

FUL.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.48	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	8.90%

Tax rate	28.30%	41.70%
Debt/Equity ratio	0.97	0.97
Cost of debt	7.60%	8.10%

After-tax WACC	6.2%	6.8%


Selected WACC	6.5%

FUL.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 FUL.L:

cost_of_equity (7.90%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.48) + 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.