FIC.MI
First Capital SpA
Price:  
18.40 
EUR
Volume:  
250.00
Italy | Capital Markets
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FIC.MI WACC - Weighted Average Cost of Capital

The WACC of First Capital SpA (FIC.MI) is 9.3%.

The Cost of Equity of First Capital SpA (FIC.MI) is 11.80%.
The Cost of Debt of First Capital SpA (FIC.MI) is 5.00%.

Range Selected
Cost of equity 9.70% - 13.90% 11.80%
Tax rate 10.20% - 19.90% 15.05%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.0% - 10.7% 9.3%
WACC

FIC.MI WACC calculation

Category Low High
Long-term bond rate 3.7% 4.2%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.73 0.99
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.70% 13.90%
Tax rate 10.20% 19.90%
Debt/Equity ratio 0.49 0.49
Cost of debt 5.00% 5.00%
After-tax WACC 8.0% 10.7%
Selected WACC 9.3%

FIC.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 FIC.MI:

cost_of_equity (11.80%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.73) + 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.