ENEL.MI WACC - Weighted Average Cost of Capital

The WACC of Enel SpA (ENEL.MI) is 10.8%.

The Cost of Equity of Enel SpA (ENEL.MI) is 11.35%.

The Cost of Debt of Enel SpA (ENEL.MI) is 15.30%.

	Range	Selected
Cost of equity	9.80% - 12.90%	11.35%
Tax rate	32.50% - 35.20%	33.85%
Cost of debt	6.90% - 23.70%	15.30%
WACC	7.7% - 13.9%	10.8%

WACC

ENEL.MI WACC calculation

Category	Low	High

Long-term bond rate	3.7%	4.2%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.74	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	12.90%

Tax rate	32.50%	35.20%
Debt/Equity ratio	0.72	0.72
Cost of debt	6.90%	23.70%

After-tax WACC	7.7%	13.9%


Selected WACC	10.8%

ENEL.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 ENEL.MI:

cost_of_equity (11.35%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.74) + 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.