The WACC of Datalogic SpA (DAL.MI) is 11.4%.
| Range | Selected | |
| Cost of equity | 12.20% - 15.90% | 14.05% |
| Tax rate | 11.60% - 12.50% | 12.05% |
| Cost of debt | 4.00% - 4.70% | 4.35% |
| WACC | 9.9% - 12.8% | 11.4% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.02 | 1.2 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.20% | 15.90% |
| Tax rate | 11.60% | 12.50% |
| Debt/Equity ratio | 0.35 | 0.35 |
| Cost of debt | 4.00% | 4.70% |
| After-tax WACC | 9.9% | 12.8% |
| Selected WACC | 11.4% | |
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 DAL.MI:
cost_of_equity (14.05%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (1.02) + 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.