AMB.MI WACC - Weighted Average Cost of Capital
The WACC of Ambromobiliare SpA (AMB.MI) is 8.3%.
| Range | Selected | |
| Cost of equity | 8.3% - 10.9% | 9.6% |
| Tax rate | 30.6% - 36.9% | 33.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.3% - 9.3% | 8.3% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.56 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 10.9% |
| Tax rate | 30.6% | 36.9% |
| Debt/Equity ratio | 0.25 | 0.25 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.3% | 9.3% |
| Selected WACC | 8.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AMB.MI | Ambromobiliare SpA | 0.25 | 0.14 | 0.12 |
| BELU.BR | Beluga NV | 0.08 | -0.24 | -0.23 |
| CNLCAP.AT | CNL Capital EKES AIFM | 0.89 | 0.13 | 0.08 |
| COP.MI | Copernico SIM SpA | 0.02 | 0.57 | 0.56 |
| GRNYO.IS | Garanti Yatirim Ortakligi AS | 0.01 | 0.69 | 0.68 |
| MAFL.L | Mineral & Financial Investments Ltd | 0 | 0.19 | 0.19 |
| MARKA.IS | Marka Yatirim Holding AS | 0 | 1.62 | 1.62 |
| MWT.WA | M.W. Trade SA | 0.05 | 0.38 | 0.36 |
| NUQA.SG | Navigator Equity Solutions SE | 0.12 | 0.52 | 0.49 |
| SCM.MI | Solutions Capital Management SIM SpA | 0.21 | 0.47 | 0.41 |
| Low | High | |
| Unlevered beta | 0.29 | 0.44 |
| Relevered beta | 0.34 | 0.51 |
| Adjusted relevered beta | 0.56 | 0.67 |
AMB.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 AMB.MI:
cost_of_equity (9.60%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.56) + 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.