CSP.MI
CSP International Fashion Group SpA
Price:  
0.28 
EUR
Volume:  
29,446.00
Italy | Textiles, Apparel & Luxury Goods
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CSP.MI WACC - Weighted Average Cost of Capital

The WACC of CSP International Fashion Group SpA (CSP.MI) is 6.0%.

The Cost of Equity of CSP International Fashion Group SpA (CSP.MI) is 9.50%.
The Cost of Debt of CSP International Fashion Group SpA (CSP.MI) is 4.95%.

Range Selected
Cost of equity 8.30% - 10.70% 9.50%
Tax rate 24.00% - 24.00% 24.00%
Cost of debt 4.00% - 5.90% 4.95%
WACC 5.1% - 6.9% 6.0%
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 0.56 0.65
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.30% 10.70%
Tax rate 24.00% 24.00%
Debt/Equity ratio 1.6 1.6
Cost of debt 4.00% 5.90%
After-tax WACC 5.1% 6.9%
Selected WACC 6.0%

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 (9.50%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.56) + 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.