FOS.MI WACC - Weighted Average Cost of Capital
The WACC of Fos SpA (FOS.MI) is 7.2%.
| Range | Selected | |
| Cost of equity | 7.1% - 10.2% | 8.65% |
| Tax rate | 30.0% - 32.8% | 31.4% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.0% - 8.4% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.41 | 0.6 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 10.2% |
| Tax rate | 30.0% | 32.8% |
| Debt/Equity ratio | 0.34 | 0.34 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.0% | 8.4% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FOS.MI | Fos SpA | 0.34 | 0.29 | 0.23 |
| ABS.MI | Arterra Bioscience SpA | 0.01 | 1.05 | 1.05 |
| DEV.WA | Devoran SA | 0.1 | 0.49 | 0.46 |
| GIGA.MC | Gigas Hosting SA | 1.31 | -0.07 | -0.04 |
| M8H.DE | MBH Corporation PLC | 14.72 | -0.54 | -0.05 |
| MOBA.ST | MOBA Network publ AB | 1.6 | 0.34 | 0.16 |
| PAS.WA | Passus SA | 0 | 1.12 | 1.12 |
| TR1.MC | Tier 1 Technology SA | 0.02 | 0.01 | 0.01 |
| TRG.ST | Transcendent Group AB (publ) | 0.09 | 0.96 | 0.9 |
| YSFT.MI | Softec SpA | 2.21 | -0.08 | -0.03 |
| Low | High | |
| Unlevered beta | 0.1 | 0.32 |
| Relevered beta | 0.12 | 0.4 |
| Adjusted relevered beta | 0.41 | 0.6 |
FOS.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 FOS.MI:
cost_of_equity (8.65%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.41) + 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.