BIE.MI WACC - Weighted Average Cost of Capital
The WACC of Bioera SpA (BIE.MI) is 7.6%.
| Range | Selected | |
| Cost of equity | 12.7% - 18.6% | 15.65% |
| Tax rate | 0.3% - 1.6% | 0.95% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 7.4% - 7.7% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.08 | 1.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.7% | 18.6% |
| Tax rate | 0.3% | 1.6% |
| Debt/Equity ratio | 12.98 | 12.98 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 7.4% | 7.7% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BIE.MI | Bioera SpA | 12.98 | -0.02 | 0 |
| ENV.MI | Enervit SpA | 0.16 | 0.15 | 0.13 |
| HRP.WA | Harper Hygienics SA | 3.7 | 0.3 | 0.06 |
| MPH.WA | Master Pharm SA | 0.05 | 0.35 | 0.34 |
| MSON B.ST | Midsona AB | 0.47 | 0.06 | 0.04 |
| NATTO.OL | Nattopharma ASA | 0.02 | 1.22 | 1.19 |
| NICO.ST | Nicoccino Holding AB (publ) | 0.04 | -1.08 | -1.04 |
| NNH.ST | New Nordic Healthbrands AB | 0.3 | 0.12 | 0.09 |
| PAP.AT | Papoutsanis Industrial and Commercial of Consumer Goods SA | 0.36 | 0.51 | 0.37 |
| SIS.L | Science in Sport PLC | 0.16 | 0.14 | 0.12 |
| Low | High | |
| Unlevered beta | 0.08 | 0.13 |
| Relevered beta | 1.12 | 1.75 |
| Adjusted relevered beta | 1.08 | 1.5 |
BIE.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 BIE.MI:
cost_of_equity (15.65%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (1.08) + 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.