B.MI WACC - Weighted Average Cost of Capital

The WACC of Bastogi SpA (B.MI) is 6.7%.

The Cost of Equity of Bastogi SpA (B.MI) is 9.85%.

The Cost of Debt of Bastogi SpA (B.MI) is 6.45%.

	Range	Selected
Cost of equity	8.10% - 11.60%	9.85%
Tax rate	19.90% - 29.90%	24.90%
Cost of debt	4.00% - 8.90%	6.45%
WACC	5.1% - 8.3%	6.7%

WACC

B.MI WACC calculation

Category	Low	High

Long-term bond rate	3.7%	4.2%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.53	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.10%	11.60%

Tax rate	19.90%	29.90%
Debt/Equity ratio	1.65	1.65
Cost of debt	4.00%	8.90%

After-tax WACC	5.1%	8.3%


Selected WACC	6.7%

B.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 B.MI:

cost_of_equity (9.85%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.53) + 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.