BIA.MI WACC - Weighted Average Cost of Capital

The WACC of Bialetti Industrie SpA (BIA.MI) is 11.1%.

The Cost of Equity of Bialetti Industrie SpA (BIA.MI) is 10.85%.

The Cost of Debt of Bialetti Industrie SpA (BIA.MI) is 12.90%.

	Range	Selected
Cost of equity	6.70% - 15.00%	10.85%
Tax rate	7.40% - 12.80%	10.10%
Cost of debt	4.60% - 21.20%	12.90%
WACC	5.3% - 17.0%	11.1%

WACC

BIA.MI WACC calculation

Category	Low	High

Long-term bond rate	3.7%	4.2%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.36	1.11

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	15.00%

Tax rate	7.40%	12.80%
Debt/Equity ratio	1.36	1.36
Cost of debt	4.60%	21.20%

After-tax WACC	5.3%	17.0%


Selected WACC	11.1%

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.