FDE.MI WACC - Weighted Average Cost of Capital
The WACC of Frendy Energy SpA (FDE.MI) is 9.1%.
| Range | Selected | |
| Cost of equity | 8.5% - 10.1% | 9.3% |
| Tax rate | 11.8% - 15.7% | 13.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.4% - 9.9% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 4.3% | 4.8% |
| Equity market risk premium | 8.8% | 9.8% |
| Adjusted beta | 0.48 | 0.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 10.1% |
| Tax rate | 11.8% | 15.7% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.4% | 9.9% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FDE.MI | Frendy Energy SpA | 0.03 | 0.22 | 0.21 |
| AEGA.OL | Aega ASA | 0.41 | 8.54 | 6.31 |
| AKSUE.IS | Aksu Enerji ve Ticaret AS | 0.11 | 1.12 | 1.02 |
| ALTEO.BD | Alteo Energiaszolgaltato Nyrt | 0.23 | 0.56 | 0.47 |
| ARN.MI | Alerion Clean Power SpA | 1.45 | 0.65 | 0.29 |
| EAM.OL | EAM Solar ASA | 0.19 | -4.2 | -3.61 |
| ESUN.SW | Edisun Power Europe AG | 4.89 | 0.72 | 0.14 |
| HRPK.DE | 7C Solarparken AG | 1.5 | 0.76 | 0.33 |
| NSE.AS | New Sources Energy NV | 0.04 | 0.17 | 0.17 |
| PANNERGY.BD | PannErgy Nyrt | 0.47 | 0.3 | 0.22 |
| Low | High | |
| Unlevered beta | 0.21 | 0.31 |
| Relevered beta | 0.22 | 0.24 |
| Adjusted relevered beta | 0.48 | 0.49 |
FDE.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 FDE.MI:
cost_of_equity (9.30%) = risk_free_rate (4.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.48) + 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.