CSP.MI WACC - Weighted Average Cost of Capital

The WACC of CSP International Fashion Group SpA (CSP.MI) is 5.5%.

The Cost of Equity of CSP International Fashion Group SpA (CSP.MI) is 8.10%.

The Cost of Debt of CSP International Fashion Group SpA (CSP.MI) is 4.95%.

	Range	Selected
Cost of equity	6.80% - 9.40%	8.10%
Tax rate	24.00% - 24.00%	24.00%
Cost of debt	4.00% - 5.90%	4.95%
WACC	4.5% - 6.4%	5.5%

WACC

CSP.MI WACC calculation

Category	Low	High

Long-term bond rate	3.7%	4.2%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.38	0.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	9.40%

Tax rate	24.00%	24.00%
Debt/Equity ratio	1.53	1.53
Cost of debt	4.00%	5.90%

After-tax WACC	4.5%	6.4%


Selected WACC	5.5%

CSP.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 CSP.MI:

cost_of_equity (8.10%) = 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.