FDA.MI WACC - Weighted Average Cost of Capital
The WACC of Fidia SpA (FDA.MI) is 5.7%.
| Range | Selected | |
| Cost of equity | 7.1% - 8.8% | 7.95% |
| Tax rate | 3.6% - 5.2% | 4.4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.4% - 5.9% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.41 | 0.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 8.8% |
| Tax rate | 3.6% | 5.2% |
| Debt/Equity ratio | 2.57 | 2.57 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.4% | 5.9% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FDA.MI | Fidia SpA | 2.57 | 0.56 | 0.16 |
| CLA.MI | Clabo SpA | 2.53 | 1.14 | 0.33 |
| CTH1V.HE | Componenta Corp | 0.37 | 0.04 | 0.03 |
| DAR.DE | Datron AG | 0.74 | 0.03 | 0.02 |
| DESA.MC | Desarrollos Especiales de Sistemas de Anclajes SA | 0.65 | 0.08 | 0.05 |
| ESAU.MI | Esautomotion SpA | 0.03 | 0.05 | 0.05 |
| FSG.WA | Fabryki Sprzetu i Narzedzi Gorniczych Grupa Kapitalowa Fasing SA | 1.95 | 0.04 | 0.01 |
| MOLD.MI | Costamp Group SpA | 2.93 | 0.14 | 0.04 |
| SIXH.L | 600 Group PLC | 3.89 | -0.26 | -0.05 |
| VIM.MI | Vimi Fasteners SpA | 1.49 | 0.39 | 0.16 |
| Low | High | |
| Unlevered beta | 0.03 | 0.05 |
| Relevered beta | 0.12 | 0.16 |
| Adjusted relevered beta | 0.41 | 0.44 |
FDA.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 FDA.MI:
cost_of_equity (7.95%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.41) + 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.