FMNL.NS WACC - Weighted Average Cost of Capital

The WACC of Future Market Networks Ltd (FMNL.NS) is 12.7%.

The Cost of Equity of Future Market Networks Ltd (FMNL.NS) is 31.45%.

The Cost of Debt of Future Market Networks Ltd (FMNL.NS) is 11.80%.

	Range	Selected
Cost of equity	27.60% - 35.30%	31.45%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	8.20% - 15.40%	11.80%
WACC	9.9% - 15.4%	12.7%

WACC

FMNL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	2.5	2.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.60%	35.30%

Tax rate	30.00%	30.00%
Debt/Equity ratio	4.26	4.26
Cost of debt	8.20%	15.40%

After-tax WACC	9.9%	15.4%


Selected WACC	12.7%

FMNL.NS'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 FMNL.NS:

cost_of_equity (31.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (2.5) + 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.