CBB.MI WACC - Weighted Average Cost of Capital
The WACC of CleanBnB SpA (CBB.MI) is 7.7%.
| Range | Selected | |
| Cost of equity | 6.8% - 8.8% | 7.8% |
| Tax rate | 10.4% - 14.3% | 12.35% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.7% - 8.7% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.38 | 0.45 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 8.8% |
| Tax rate | 10.4% | 14.3% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.7% | 8.7% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CBB.MI | CleanBnB SpA | 0.03 | 0.31 | 0.3 |
| CDFF.L | Cardiff Property PLC | 0.01 | -0.01 | -0.01 |
| CIA.MI | Compagnia Immobiliare Azionaria SpA | 1.11 | 0.51 | 0.26 |
| DKE.L | Dukemount Capital PLC | 2.51 | 2.07 | 0.65 |
| EEM.PA | Electricite et Eaux De Madagascar SA | 0.21 | 0.83 | 0.7 |
| LINKAB.ST | Link Prop Investment AB (publ) | 0.72 | 0.13 | 0.08 |
| SMWN.DE | SM Wirtschaftsberatungs AG | 0.06 | 0.12 | 0.12 |
| SOFT.BR | Softimat SA | 0.04 | -0.04 | -0.04 |
| VEF1R.RG | VEF AS | 0.3 | -0.81 | -0.64 |
| WSP.L | Wynnstay Properties PLC | 0.47 | 0.07 | 0.05 |
| Low | High | |
| Unlevered beta | 0.07 | 0.17 |
| Relevered beta | 0.07 | 0.18 |
| Adjusted relevered beta | 0.38 | 0.45 |
CBB.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 CBB.MI:
cost_of_equity (7.80%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.38) + 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.