FNX.MI WACC - Weighted Average Cost of Capital
The WACC of Fenix Entertainment SpA (FNX.MI) is 3.8%.
| Range | Selected | |
| Cost of equity | 11.3% - 28.0% | 19.65% |
| Tax rate | 31.6% - 34.7% | 33.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.6% - 3.9% | 3.8% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.92 | 2.51 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.3% | 28.0% |
| Tax rate | 31.6% | 34.7% |
| Debt/Equity ratio | 37.98 | 37.98 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.6% | 3.9% |
| Selected WACC | 3.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FNX.MI | Fenix Entertainment SpA | 37.98 | -4.77 | -0.18 |
| ALCHI.PA | Alchimie SAS | 5.31 | -0.14 | -0.03 |
| CRB.WA | Carbon Studio SA | 0.23 | 0.2 | 0.17 |
| KOLL.ST | Kollect on Demand Holding AB (publ) | 0.11 | 0.85 | 0.79 |
| NVP.MI | Nvp SpA | 0.51 | -0.1 | -0.07 |
| PAS.WA | Passus SA | 0 | 1.12 | 1.12 |
| SIM.WA | Simfabric SA | 0.05 | 0.41 | 0.39 |
| TALK.ST | TalkPool AG | 0.4 | 0.07 | 0.05 |
| TOOP.L | Toople PLC | 4.03 | 0.03 | 0.01 |
| ZAIM.L | Zaim Credit Systems PLC | 1.17 | -0.79 | -0.45 |
| NUR.CN | Nuran Wireless Inc | 5.22 | 0.42 | 0.1 |
| Low | High | |
| Unlevered beta | 0.01 | 0.1 |
| Relevered beta | 0.88 | 3.25 |
| Adjusted relevered beta | 0.92 | 2.51 |
FNX.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 FNX.MI:
cost_of_equity (19.65%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.92) + 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.