BEC.MI WACC - Weighted Average Cost of Capital

The WACC of B & C Speakers SpA (BEC.MI) is 9.0%.

The Cost of Equity of B & C Speakers SpA (BEC.MI) is 9.60%.

The Cost of Debt of B & C Speakers SpA (BEC.MI) is 4.35%.

	Range	Selected
Cost of equity	7.90% - 11.30%	9.60%
Tax rate	21.80% - 25.90%	23.85%
Cost of debt	4.20% - 4.50%	4.35%
WACC	7.5% - 10.5%	9.0%

WACC

BEC.MI WACC calculation

Category	Low	High

Long-term bond rate	3.7%	4.2%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.51	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	11.30%

Tax rate	21.80%	25.90%
Debt/Equity ratio	0.11	0.11
Cost of debt	4.20%	4.50%

After-tax WACC	7.5%	10.5%


Selected WACC	9.0%

BEC.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 BEC.MI:

cost_of_equity (9.60%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.51) + 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.