BSS.MI WACC - Weighted Average Cost of Capital
The WACC of Biesse SpA (BSS.MI) is 8.5%.
| Range | Selected | |
| Cost of equity | 11.1% - 16.0% | 13.55% |
| Tax rate | 25.9% - 32.0% | 28.95% |
| Cost of debt | 4.1% - 5.4% | 4.75% |
| WACC | 7.1% - 9.9% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.9 | 1.22 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.1% | 16.0% |
| Tax rate | 25.9% | 32.0% |
| Debt/Equity ratio | 0.98 | 0.98 |
| Cost of debt | 4.1% | 5.4% |
| After-tax WACC | 7.1% | 9.9% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BSS.MI | Biesse SpA | 0.98 | 1.1 | 0.64 |
| BCHN.SW | Burckhardt Compression Holding AG | 0.07 | 0.96 | 0.91 |
| EPRO B.ST | Electrolux Professional publ AB | 0.17 | 1.1 | 0.98 |
| FTON.SW | Feintool International Holding AG | 0.68 | 0.42 | 0.28 |
| PFV.DE | Pfeiffer Vacuum Technology AG | 0.1 | 0.13 | 0.12 |
| RIEN.SW | Rieter Holding AG | 1.03 | 1.35 | 0.77 |
| SEM.VI | Semperit AG Holding | 1.06 | 0.32 | 0.18 |
| SLT.DE | Schaltbau Holding AG | 0.19 | 1.01 | 0.89 |
| STM.DE | Stabilus SA | 1.25 | 1.51 | 0.79 |
| WSU.DE | WashTec AG | 0.12 | 0.25 | 0.23 |
| Low | High | |
| Unlevered beta | 0.5 | 0.78 |
| Relevered beta | 0.85 | 1.33 |
| Adjusted relevered beta | 0.9 | 1.22 |
BSS.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 BSS.MI:
cost_of_equity (13.55%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.9) + 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.