Fulcrum Utility Services Ltd (FCRM.L) WACC Analysis

As of May 28, 2025, Fulcrum Utility Services Ltd (FCRM.L) carries a Weighted Average Cost of Capital (WACC) of 6.7%. WACC reflects the blended rate Fulcrum Utility Services Ltd must pay to both equity and debt holders.

Within that, the cost of equity is 9.2%, the cost of debt is 6.1%, and the effective tax rate is 8.3%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.87 – 0.94
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 4.54

What It Means for Investors

With a selected WACC of 6.7%, Fulcrum Utility Services Ltd must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.