BO.MI WACC - Weighted Average Cost of Capital
The WACC of Borgosesia SpA (BO.MI) is 5.7%.
| Range | Selected | |
| Cost of equity | 7.9% - 12.7% | 10.3% |
| Tax rate | 5.7% - 9.2% | 7.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.3% - 6.1% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.51 | 0.86 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 12.7% |
| Tax rate | 5.7% | 9.2% |
| Debt/Equity ratio | 4.21 | 4.21 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.3% | 6.1% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BO.MI | Borgosesia SpA | 4.21 | 0.22 | 0.04 |
| AFK.OL | Arendals Fossekompani ASA | 0.25 | 0.19 | 0.15 |
| ALARK.IS | Alarko Holding AS | 0.02 | 1.17 | 1.14 |
| CEPS.L | Ceps PLC | 2.36 | -0.29 | -0.09 |
| GKI.WA | Grupa Kapitalowa Immobile SA | 1.85 | 0.16 | 0.06 |
| INFREA.ST | Infrea AB | 0.75 | 0.3 | 0.18 |
| IUR.DE | Kap AG | 1 | 0.7 | 0.36 |
| MZHLD.IS | Mazhar Zorlu Holding AS | 0.01 | 0.98 | 0.97 |
| TOMA.PR | Toma as | 0.26 | -0.09 | -0.07 |
| VOLO.ST | Volati AB | 0.31 | 0.06 | 0.04 |
| Low | High | |
| Unlevered beta | 0.05 | 0.16 |
| Relevered beta | 0.27 | 0.79 |
| Adjusted relevered beta | 0.51 | 0.86 |
BO.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 BO.MI:
cost_of_equity (10.30%) = 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.