FPE.MI
Fope SpA
Price:  
30.00 
EUR
Volume:  
1,500.00
Italy | Textiles, Apparel & Luxury Goods
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FPE.MI WACC - Weighted Average Cost of Capital

The WACC of Fope SpA (FPE.MI) is 8.0%.

The Cost of Equity of Fope SpA (FPE.MI) is 8.25%.
The Cost of Debt of Fope SpA (FPE.MI) is 5.00%.

Range Selected
Cost of equity 7.30% - 9.20% 8.25%
Tax rate 18.90% - 22.40% 20.65%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.1% - 8.8% 8.0%
WACC

FPE.MI WACC calculation

Category Low High
Long-term bond rate 3.7% 4.2%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.44 0.48
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 9.20%
Tax rate 18.90% 22.40%
Debt/Equity ratio 0.07 0.07
Cost of debt 5.00% 5.00%
After-tax WACC 7.1% 8.8%
Selected WACC 8.0%

FPE.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 FPE.MI:

cost_of_equity (8.25%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.44) + 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.