ASR.MI WACC - Weighted Average Cost of Capital

The WACC of AS Roma SpA (ASR.MI) is 6.6%.

The Cost of Equity of AS Roma SpA (ASR.MI) is 7.70%.

The Cost of Debt of AS Roma SpA (ASR.MI) is 7.05%.

	Range	Selected
Cost of equity	6.60% - 8.80%	7.70%
Tax rate	10.50% - 28.30%	19.40%
Cost of debt	7.00% - 7.10%	7.05%
WACC	6.4% - 6.8%	6.6%

WACC

ASR.MI WACC calculation

Category	Low	High

Long-term bond rate	3.7%	4.2%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.35	0.44

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	8.80%

Tax rate	10.50%	28.30%
Debt/Equity ratio	1.19	1.19
Cost of debt	7.00%	7.10%

After-tax WACC	6.4%	6.8%


Selected WACC	6.6%

ASR.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 ASR.MI:

cost_of_equity (7.70%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.35) + 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.