AGA.MI WACC - Weighted Average Cost of Capital
The WACC of Agatos SpA (AGA.MI) is 5.5%.
| Range | Selected | |
| Cost of equity | 6.4% - 7.8% | 7.1% |
| Tax rate | 1.5% - 2.7% | 2.1% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.3% - 5.6% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.33 | 0.34 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 7.8% |
| Tax rate | 1.5% | 2.7% |
| Debt/Equity ratio | 2.81 | 2.81 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.3% | 5.6% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AGA.MI | Agatos SpA | 2.81 | 0 | 0 |
| BIOT.AT | Bioter SA | 52.63 | -0.15 | 0 |
| BTX.WA | Forbuild SA | 0.05 | 0 | 0 |
| DOMIK.AT | Domiki Kritis SA | 0.19 | 0.99 | 0.83 |
| EBX.WA | Ekobox SA | 0.02 | 1.21 | 1.19 |
| ENP.WA | Energoaparatura SA | 0.01 | -0.07 | -0.07 |
| PRD.AT | Proodeftiki Technical Co SA | 0.42 | -0.42 | -0.3 |
| TOS.WA | Tamex Obiekty Sportowe SA | 0.09 | -0.31 | -0.29 |
| ULM.WA | Ulma Construccion Polska SA | 0.03 | 0 | 0 |
| Low | High | |
| Unlevered beta | 0 | 0 |
| Relevered beta | 0 | 0.01 |
| Adjusted relevered beta | 0.33 | 0.34 |
AGA.MI'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 AGA.MI:
cost_of_equity (7.10%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.33) + 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.