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FMC Corporation (FMC) — WACC Analysis

WACC Breakdown

FMC Corporation (FMC) has a weighted average cost of capital (WACC) of 6.8%. The cost of equity is 8.6%, derived from a beta of 0.86 and a risk-free rate of 4.7%. The after-tax cost of debt is 6.2%. The capital structure is 24.9% equity and 75.1% debt.

Interpretation

A WACC of 6.8% suggests that the market views FMC Corporation as relatively low-risk, with a lower cost of financing.

Investors can compare FMC's WACC of 6.8% against industry peers to gauge its relative financing costs. A beta of 0.86 reflects the stock's volatility relative to the broader market.

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VALUATION

FMC WACC: 6.79% for FMC Corporation

Current inputs imply a 8.57% cost of equity and a 6.19% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

FMC Corporation Common Stock (FMC) WACC Results
Weighted Average Cost of Capital
6.79%
Cost of Equity
8.57%
Risk-Free Rate4.73%
Beta0.86
Market Risk Premium4.23%
Cost of Debt
6.19%
Pre-Tax Cost of Debt6.19%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 24.93%($1418.82M)
Debt: 75.07%($4271.30M)
Equity Component
2.14%
24.93% × 8.57%
Debt Component
4.65%
75.07% × 6.19%

FMC Corporation (FMC) WACC in context

FMC Corporation (FMC) currently screens with an estimated WACC of 6.79%. That blends a 8.57% cost of equity, a 6.19% pre-tax cost of debt, and a 24.93% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What FMC WACC implies

A 6.79% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates FMC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.86 and equity accounts for 24.93% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.