>
Switch to:

Fuel Doctor Holdings WACC %

:18.29% (As of Today)
View and export this data going back to 2010. Start your Free Trial

As of today (2021-10-27), Fuel Doctor Holdings's weighted average cost of capital is 18.29%. Fuel Doctor Holdings's ROIC % is -120.00% (calculated using TTM income statement data). Fuel Doctor Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Fuel Doctor Holdings WACC % Historical Data

The historical data trend for Fuel Doctor Holdings's WACC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Fuel Doctor Holdings Annual Data
Trend Dec09 Dec10 Dec11
WACC %
- - 8.13

Fuel Doctor Holdings Quarterly Data
Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Mar20 Jun20 Mar21 Jun21
WACC % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.30 - - - -

Competitive Comparison

For the Auto Parts subindustry, Fuel Doctor Holdings's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Fuel Doctor Holdings WACC % Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Fuel Doctor Holdings's WACC % distribution charts can be found below:

* The bar in red indicates where Fuel Doctor Holdings's WACC % falls into.



Fuel Doctor Holdings WACC % Calculation

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.

WACC=E/(E + D)*Cost of Equity+D/(E + D)*Cost of Debt*(1 - Tax Rate)

1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Fuel Doctor Holdings's market capitalization (E) is $2.645 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest two-year average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Jun. 2021, Fuel Doctor Holdings's latest two-year average Short-Term Debt & Capital Lease Obligation was $0.249 Mil and its latest two-year average Long-Term Debt & Capital Lease Obligation was $0.3045 Mil. The total Book Value of Debt (D) is $0.5535 Mil.
a) weight of equity = E / (E + D) = 2.645 / (2.645 + 0.5535) = 0.827
b) weight of debt = D / (E + D) = 0.5535 / (2.645 + 0.5535) = 0.173

2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 1.64000000%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Fuel Doctor Holdings's beta is 3.18.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 1.64000000% + 3.18 * 6% = 20.72%

3. Cost of Debt:
GuruFocus uses last fiscal year end Interest Expense divided by the latest two-year average debt to get the simplified cost of debt.
As of Dec. 2011, Fuel Doctor Holdings's interest expense (positive number) was $0.037 Mil. Its total Book Value of Debt (D) is $0.5535 Mil.
Cost of Debt = 0.037 / 0.5535 = 6.6847%.

4. Multiply by one minus Average Tax Rate:
GuruFocus uses the latest two-year average tax rate to do the calculation. The calculated average tax rate is limited to between 0% and 100%. If the calculated average tax rate is higher than 100%, it is set to 100%. If the calculated average tax rate is less than 0%, it is set to 0%.
The latest Two-year Average Tax Rate is 0%.

Fuel Doctor Holdings's Weighted Average Cost Of Capital (WACC) for Today is calculated as:

WACC=E / (E + D)*Cost of Equity+D / (E + D)*Cost of Debt*(1 - Tax Rate)
=0.827*20.72%+0.173*6.6847%*(1 - 0%)
=18.29%

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Fuel Doctor Holdings  (OTCPK:FDOC) WACC % Explanation

Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Fuel Doctor Holdings's weighted average cost of capital is 18.29%. Fuel Doctor Holdings's ROIC % is -120.00% (calculated using TTM income statement data). Fuel Doctor Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Be Aware

1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest two-year average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.

2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.

3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.

4. GuruFocus uses last fiscal year end Interest Expense divided by the latest two-year average debt to get the simplified cost of debt.


Related Terms

Fuel Doctor Holdings Business Description

Fuel Doctor Holdings logo
Industry
Consumer Cyclical » Vehicles & Parts NAICS : 336390 SIC : 5013
Traded in Other Exchanges
N/A
Address
23961 Craftsman Road, Suite LM, Calabasas, CA, USA, 91302
Website
Fuel Doctor Holdings Inc provides solutions to the automotive aftermarket. It is a distributor of FD-47, a power conditioner/fuel efficiency booster that plugs into the lighter socket.

Fuel Doctor Holdings Headlines

No Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)