BRI.MI
Brioschi Sviluppo Immobiliare SpA
Price:  
0.06 
EUR
Volume:  
407,216
Italy | Real Estate Management & Development

BRI.MI WACC - Weighted Average Cost of Capital

The WACC of Brioschi Sviluppo Immobiliare SpA (BRI.MI) is 5.7%.

The Cost of Equity of Brioschi Sviluppo Immobiliare SpA (BRI.MI) is 7.6%.
The Cost of Debt of Brioschi Sviluppo Immobiliare SpA (BRI.MI) is 5%.

RangeSelected
Cost of equity6.0% - 9.2%7.6%
Tax rate5.3% - 11.9%8.6%
Cost of debt5.0% - 5.0%5%
WACC5.2% - 6.1%5.7%
WACC

BRI.MI WACC calculation

CategoryLowHigh
Long-term bond rate3.7%4.2%
Equity market risk premium8.3%9.3%
Adjusted beta0.290.49
Additional risk adjustments0.0%0.5%
Cost of equity6.0%9.2%
Tax rate5.3%11.9%
Debt/Equity ratio
1.821.82
Cost of debt5.0%5.0%
After-tax WACC5.2%6.1%
Selected WACC5.7%

BRI.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 BRI.MI:

cost_of_equity (7.60%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.29) + 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.