FF.MI WACC - Weighted Average Cost of Capital
The WACC of Fine Foods & Pharmaceuticals NTM SpA (FF.MI) is 9.7%.
| Range | Selected | |
| Cost of equity | 9.9% - 14.2% | 12.05% |
| Tax rate | 32.3% - 47.4% | 39.85% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.2% - 11.3% | 9.7% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.75 | 1.03 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.9% | 14.2% |
| Tax rate | 32.3% | 47.4% |
| Debt/Equity ratio | 0.34 | 0.34 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.2% | 11.3% |
| Selected WACC | 9.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FF.MI | Fine Foods & Pharmaceuticals NTM SpA | 0.34 | 0.17 | 0.14 |
| BIOT.ST | Biotage AB | 0.02 | 0.94 | 0.93 |
| CHEMM.CO | Chemometec A/S | 0 | 0.35 | 0.35 |
| DIM.PA | Sartorius Stedim Biotech SA | 0.15 | 1.36 | 1.23 |
| GDR.L | Genedrive PLC | 0.03 | 0.63 | 0.61 |
| GXI.DE | Gerresheimer AG | 0.63 | 1.44 | 1.01 |
| MCAP.ST | MedCap AB (publ) | 0.05 | 0.18 | 0.18 |
| PCA.PA | Pcas SA | 0.67 | -0.03 | -0.02 |
| SFZN.SW | Siegfried Holding AG | 0.11 | 0.86 | 0.79 |
| TECN.SW | Tecan Group AG | 0.14 | 1.07 | 0.98 |
| Low | High | |
| Unlevered beta | 0.51 | 0.85 |
| Relevered beta | 0.63 | 1.04 |
| Adjusted relevered beta | 0.75 | 1.03 |
FF.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 FF.MI:
cost_of_equity (12.05%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.75) + 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.