BIA.MI WACC - Weighted Average Cost of Capital
The WACC of Bialetti Industrie SpA (BIA.MI) is 11.1%.
| Range | Selected | |
| Cost of equity | 6.7% - 15.0% | 10.85% |
| Tax rate | 7.4% - 12.8% | 10.1% |
| Cost of debt | 4.6% - 21.2% | 12.9% |
| WACC | 5.3% - 17.0% | 11.1% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.36 | 1.11 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 15.0% |
| Tax rate | 7.4% | 12.8% |
| Debt/Equity ratio | 1.35 | 1.35 |
| Cost of debt | 4.6% | 21.2% |
| After-tax WACC | 5.3% | 17.0% |
| Selected WACC | 11.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BIA.MI | Bialetti Industrie SpA | 1.35 | 1.19 | 0.54 |
| BCRA.PA | Baccarat SA | 0.36 | 0.99 | 0.74 |
| CHH.L | Churchill China PLC | 0.01 | 0.71 | 0.7 |
| IGR.L | IG Design Group PLC | 1.19 | -0.64 | -0.31 |
| ILLA.MI | ILLA SpA | 27.95 | -0.57 | -0.02 |
| KUTPO.IS | Kutahya Porselen Sanayi AS | 0.04 | 1.45 | 1.4 |
| LEI.DE | Leifheit AG | 0.01 | 0.53 | 0.52 |
| PMP.L | Portmeirion Group PLC | 1.52 | -0.56 | -0.24 |
| PORF.AS | Koninklijke Porceleyne Fles NV | 1.47 | 0.07 | 0.03 |
| VAF.LS | VAA Vista Alegre Atlantis SGPS SA | 0.51 | 0.02 | 0.01 |
| Low | High | |
| Unlevered beta | 0.02 | 0.53 |
| Relevered beta | 0.04 | 1.16 |
| Adjusted relevered beta | 0.36 | 1.11 |
BIA.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 BIA.MI:
cost_of_equity (10.85%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.36) + 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.