DLG.MI WACC - Weighted Average Cost of Capital
The WACC of De' Longhi SpA (DLG.MI) is 8.7%.
| Range | Selected | |
| Cost of equity | 8.6% - 11.1% | 9.85% |
| Tax rate | 22.9% - 23.8% | 23.35% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.7% - 9.7% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.6 | 0.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.6% | 11.1% |
| Tax rate | 22.9% | 23.8% |
| Debt/Equity ratio | 0.21 | 0.21 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.7% | 9.7% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DLG.MI | De' Longhi SpA | 0.21 | 1.13 | 0.97 |
| AMC.WA | Amica SA | 0.49 | 0.56 | 0.41 |
| ARCLK.IS | Arcelik AS | 0.61 | 0.79 | 0.54 |
| EIN3.DE | Einhell Germany AG | 0.65 | 0.56 | 0.37 |
| ELC.MI | Elica SpA | 1.09 | 0.54 | 0.29 |
| EM.MI | Emak SpA | 1.97 | 0.76 | 0.3 |
| HUSQ B.ST | Husqvarna AB | 0.48 | 1.22 | 0.9 |
| INDB.MI | Indel B SpA | 0.24 | 0.33 | 0.28 |
| SAB.MI | Sabaf SpA | 0.52 | 0.29 | 0.21 |
| VESBE.IS | Vestel Beyaz Esya Sanayi ve Ticaret AS | 0.16 | 0.85 | 0.76 |
| Low | High | |
| Unlevered beta | 0.35 | 0.46 |
| Relevered beta | 0.4 | 0.54 |
| Adjusted relevered beta | 0.6 | 0.69 |
DLG.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 DLG.MI:
cost_of_equity (9.85%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.6) + 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.