The WACC of Antares Vision SpA (AV.MI) is 7.5%.
Range | Selected | |
Cost of equity | 7.0% - 11.3% | 9.15% |
Tax rate | 10.9% - 17.0% | 13.95% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 6.1% - 8.9% | 7.5% |
Category | Low | High |
Long-term bond rate | 3.7% | 4.2% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 0.4 | 0.71 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.0% | 11.3% |
Tax rate | 10.9% | 17.0% |
Debt/Equity ratio | 0.51 | 0.51 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 6.1% | 8.9% |
Selected WACC | 7.5% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
AV.MI | Antares Vision SpA | 0.51 | 0.82 | 0.57 |
AGFB.BR | AGFA Gevaert NV | 1 | 1.29 | 0.69 |
CSAM.OL | Csam Health Group AS | 0.7 | -0.67 | -0.41 |
INHC.L | Induction Healthcare Group PLC | 0.01 | -0.8 | -0.8 |
IZAFE B.ST | iZafe Group AB | 0.08 | 0.77 | 0.71 |
KONT.ST | Kontigo Care AB | 0.05 | 0.09 | 0.08 |
MNTC.ST | Mentice AB | 0.03 | 0.95 | 0.93 |
NXU.DE | Nexus AG | 0.02 | 0.06 | 0.06 |
ORTI B.ST | Ortivus AB | 0.64 | 0.43 | 0.28 |
SENS.L | Sensyne Health PLC | 1.63 | 0.16 | 0.06 |
Low | High | |
Unlevered beta | 0.07 | 0.4 |
Relevered beta | 0.1 | 0.57 |
Adjusted relevered beta | 0.4 | 0.71 |
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 AV.MI:
cost_of_equity (9.15%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.4) + 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.