GEO.MI
Geox SpA
Price:  
0.34 
EUR
Volume:  
1,066,815.00
Italy | Textiles, Apparel & Luxury Goods
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GEO.MI WACC - Weighted Average Cost of Capital

The WACC of Geox SpA (GEO.MI) is 8.7%.

The Cost of Equity of Geox SpA (GEO.MI) is 21.65%.
The Cost of Debt of Geox SpA (GEO.MI) is 4.25%.

Range Selected
Cost of equity 19.20% - 24.10% 21.65%
Tax rate 11.70% - 14.00% 12.85%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.9% - 9.5% 8.7%
WACC

GEO.MI WACC calculation

Category Low High
Long-term bond rate 3.7% 4.2%
Equity market risk premium 8.3% 9.3%
Adjusted beta 1.87 2.09
Additional risk adjustments 0.0% 0.5%
Cost of equity 19.20% 24.10%
Tax rate 11.70% 14.00%
Debt/Equity ratio 2.59 2.59
Cost of debt 4.00% 4.50%
After-tax WACC 7.9% 9.5%
Selected WACC 8.7%

GEO.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 GEO.MI:

cost_of_equity (21.65%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (1.87) + 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.