FILA.MI WACC - Weighted Average Cost of Capital

The WACC of FILA Fabbrica Italiana Lapis ed Affini SpA (FILA.MI) is 9.6%.

The Cost of Equity of FILA Fabbrica Italiana Lapis ed Affini SpA (FILA.MI) is 14.80%.

The Cost of Debt of FILA Fabbrica Italiana Lapis ed Affini SpA (FILA.MI) is 5.15%.

	Range	Selected
Cost of equity	11.80% - 17.80%	14.80%
Tax rate	23.20% - 25.60%	24.40%
Cost of debt	4.90% - 5.40%	5.15%
WACC	8.0% - 11.3%	9.6%

WACC

FILA.MI WACC calculation

Category	Low	High

Long-term bond rate	3.7%	4.2%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.98	1.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	17.80%

Tax rate	23.20%	25.60%
Debt/Equity ratio	0.89	0.89
Cost of debt	4.90%	5.40%

After-tax WACC	8.0%	11.3%


Selected WACC	9.6%

FILA.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 FILA.MI:

cost_of_equity (14.80%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.98) + 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.