ECNL.MI WACC - Weighted Average Cost of Capital
The WACC of Aquafil SpA (ECNL.MI) is 5.6%.
| Range | Selected | |
| Cost of equity | 9.2% - 13.4% | 11.3% |
| Tax rate | 15.5% - 23.3% | 19.4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.3% - 6.0% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.67 | 0.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.2% | 13.4% |
| Tax rate | 15.5% | 23.3% |
| Debt/Equity ratio | 3.51 | 3.51 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.3% | 6.0% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ECNL.MI | Aquafil SpA | 3.51 | 0.71 | 0.19 |
| AKSA.IS | Aksa Akrilik Kimya Sanayii AS | 0.24 | 1.08 | 0.91 |
| COA.L | Coats Group PLC | 0.44 | 1.16 | 0.86 |
| GABR.CO | Gabriel Holding A/S | 1.13 | 0.1 | 0.05 |
| LTH.VI | Linz Textil Holding AG | 0 | 0.05 | 0.05 |
| MNDRS.IS | Menderes Tekstil Sanayi ve Ticaret AS | 2.61 | 1.08 | 0.35 |
| PTD.L | Pittards PLC | 13.89 | -0.54 | -0.05 |
| RAT.MI | Ratti SpA | 0.54 | 0.29 | 0.2 |
| SIOE.BR | Sioen Industries NV | 0.26 | 0.36 | 0.3 |
| ZUC.MI | Vincenzo Zucchi SpA | 1.83 | -0.07 | -0.03 |
| Low | High | |
| Unlevered beta | 0.13 | 0.24 |
| Relevered beta | 0.51 | 0.91 |
| Adjusted relevered beta | 0.67 | 0.94 |
ECNL.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 ECNL.MI:
cost_of_equity (11.30%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.67) + 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.