BRI.MI WACC - Weighted Average Cost of Capital
The WACC of Brioschi Sviluppo Immobiliare SpA (BRI.MI) is 5.7%.
| Range | Selected | |
| Cost of equity | 6.0% - 9.2% | 7.6% |
| Tax rate | 5.3% - 11.9% | 8.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.2% - 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 | 0.29 | 0.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 9.2% |
| Tax rate | 5.3% | 11.9% |
| Debt/Equity ratio | 1.82 | 1.82 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.2% | 6.1% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BRI.MI | Brioschi Sviluppo Immobiliare SpA | 1.82 | 0.54 | 0.2 |
| ARC1T.TL | Arco Vara AS | 0.8 | 0.35 | 0.2 |
| CPG.WA | Capital Park SA | 1.09 | 0.01 | 0.01 |
| DUNAHOUSE.BD | Duna House Holding Nyrt | 0.43 | 0.67 | 0.48 |
| FPO.L | First Property Group PLC | 0.53 | 0.39 | 0.26 |
| KAMP.AT | REDS Real Estate Development and Services SA | 0.2 | -0.4 | -0.34 |
| MDP.WA | Medcamp SA | 0.01 | -0.16 | -0.16 |
| RHD.WA | Reinhold Europe AB | 0.21 | -0.3 | -0.25 |
| SFPN.SW | SF Urban Properties AG | 1.13 | 0.03 | 0.02 |
| WINK.L | M Winkworth PLC | 0.95 | -0.07 | -0.04 |
| Low | High | |
| Unlevered beta | -0.01 | 0.09 |
| Relevered beta | -0.06 | 0.24 |
| Adjusted relevered beta | 0.29 | 0.49 |
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.