GO.MI WACC - Weighted Average Cost of Capital
The WACC of GO internet SpA (GO.MI) is 5.5%.
| Range | Selected | |
| Cost of equity | 7.4% - 10.0% | 8.7% |
| Tax rate | 16.4% - 21.4% | 18.9% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.2% - 5.9% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.45 | 0.58 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 10.0% |
| Tax rate | 16.4% | 21.4% |
| Debt/Equity ratio | 2.15 | 2.15 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.2% | 5.9% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GO.MI | GO internet SpA | 2.15 | -0.13 | -0.05 |
| ALBUD.PA | Mint SA | 0.01 | -0.05 | -0.05 |
| BBB.L | Bigblu Broadband PLC | 0.68 | -1.12 | -0.73 |
| BRE2.ST | Bredband2 i Skandinavien AB | 0.12 | 0.22 | 0.2 |
| CALL.L | Cloudcall Group PLC | 0.1 | 1.4 | 1.3 |
| ILD.PA | Iliad SA | 1.11 | 0.21 | 0.11 |
| ITD.MI | Intred SpA | 0.28 | 0.42 | 0.34 |
| NFN.DE | NFON AG | 0.13 | 0.15 | 0.13 |
| PVSP | Pervasip Corp | 5.98 | 0.82 | 0.14 |
| Low | High | |
| Unlevered beta | 0.11 | 0.14 |
| Relevered beta | 0.18 | 0.37 |
| Adjusted relevered beta | 0.45 | 0.58 |
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 (8.70%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.45) + 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.