FMNL.NS WACC - Weighted Average Cost of Capital

The WACC of Future Market Networks Ltd (FMNL.NS) is 11.9%.

The Cost of Equity of Future Market Networks Ltd (FMNL.NS) is 21.55%.

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

	Range	Selected
Cost of equity	19.30% - 23.80%	21.55%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	8.20% - 15.40%	11.80%
WACC	9.5% - 14.4%	11.9%

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	1.5	1.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.30%	23.80%

Tax rate	30.00%	30.00%
Debt/Equity ratio	2.62	2.62
Cost of debt	8.20%	15.40%

After-tax WACC	9.5%	14.4%


Selected WACC	11.9%

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 (21.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.5) + 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.