BIM.MI
Banca Intermobiliare di Investimenti e Gestioni SpA
Price:  
0.05 
EUR
Volume:  
1,127,100.00
Italy | Capital Markets
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BIM.MI WACC - Weighted Average Cost of Capital

The WACC of Banca Intermobiliare di Investimenti e Gestioni SpA (BIM.MI) is 9.4%.

The Cost of Equity of Banca Intermobiliare di Investimenti e Gestioni SpA (BIM.MI) is 10.40%.
The Cost of Debt of Banca Intermobiliare di Investimenti e Gestioni SpA (BIM.MI) is 5.00%.

Range Selected
Cost of equity 8.90% - 11.90% 10.40%
Tax rate 4.40% - 6.70% 5.55%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.2% - 10.6% 9.4%
WACC

BIM.MI WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.9%
Adjusted beta 0.73 0.89
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 11.90%
Tax rate 4.40% 6.70%
Debt/Equity ratio 0.21 0.21
Cost of debt 5.00% 5.00%
After-tax WACC 8.2% 10.6%
Selected WACC 9.4%

BIM.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 BIM.MI:

cost_of_equity (10.40%) = risk_free_rate (4.05%) + equity_risk_premium (7.40%) * adjusted_beta (0.73) + 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.