GO.MI WACC - Weighted Average Cost of Capital

The WACC of GO internet SpA (GO.MI) is 5.2%.

The Cost of Equity of GO internet SpA (GO.MI) is 7.55%.

The Cost of Debt of GO internet SpA (GO.MI) is 5.00%.

	Range	Selected
Cost of equity	6.40% - 8.70%	7.55%
Tax rate	16.40% - 21.40%	18.90%
Cost of debt	5.00% - 5.00%	5.00%
WACC	4.9% - 5.4%	5.2%

WACC

GO.MI WACC calculation

Category	Low	High

Long-term bond rate	3.7%	4.2%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.32	0.43

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	8.70%

Tax rate	16.40%	21.40%
Debt/Equity ratio	2.15	2.15
Cost of debt	5.00%	5.00%

After-tax WACC	4.9%	5.4%


Selected WACC	5.2%

GO.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 GO.MI:

cost_of_equity (7.55%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.32) + 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.