CELL.MI WACC - Weighted Average Cost of Capital

The WACC of Cellularline SpA (CELL.MI) is 9.1%.

The Cost of Equity of Cellularline SpA (CELL.MI) is 11.40%.

The Cost of Debt of Cellularline SpA (CELL.MI) is 6.80%.

	Range	Selected
Cost of equity	9.50% - 13.30%	11.40%
Tax rate	13.00% - 25.80%	19.40%
Cost of debt	6.30% - 7.30%	6.80%
WACC	8.0% - 10.2%	9.1%

WACC

CELL.MI WACC calculation

Category	Low	High

Long-term bond rate	3.7%	4.2%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.71	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	13.30%

Tax rate	13.00%	25.80%
Debt/Equity ratio	0.63	0.63
Cost of debt	6.30%	7.30%

After-tax WACC	8.0%	10.2%


Selected WACC	9.1%

CELL.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 CELL.MI:

cost_of_equity (11.40%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.71) + 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.