IMS.MI WACC - Weighted Average Cost of Capital
The WACC of Immsi SpA (IMS.MI) is 7.1%.
| Range | Selected | |
| Cost of equity | 26.2% - 40.1% | 33.15% |
| Tax rate | 41.7% - 43.3% | 42.5% |
| Cost of debt | 4.5% - 6.8% | 5.65% |
| WACC | 5.7% - 8.5% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 2.71 | 3.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 26.2% | 40.1% |
| Tax rate | 41.7% | 43.3% |
| Debt/Equity ratio | 6.76 | 6.76 |
| Cost of debt | 4.5% | 6.8% |
| After-tax WACC | 5.7% | 8.5% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IMS.MI | Immsi SpA | 6.76 | 0.57 | 0.12 |
| EMC.MI | Energica Motor Company SpA | 0.03 | 1.12 | 1.1 |
| EVA.MI | Askoll Eva SpA | 1.3 | 0.76 | 0.44 |
| H9W.DE | HWA AG | 0.54 | 1.6 | 1.22 |
| KARSN.IS | Karsan Otomotiv Sanayii ve Ticaret AS | 0.47 | 1.55 | 1.22 |
| KTA.DE | Knaus Tabbert AG | 1.81 | 1.13 | 0.56 |
| PIA.MI | Piaggio & C SpA | 1.17 | 0.66 | 0.39 |
| TOASO.IS | Tofas Turk Otomobil Fabrikasi AS | 0.34 | 1.02 | 0.85 |
| TRI.PA | Trigano SA | 0.1 | 1.35 | 1.28 |
| NIU | NIU Technologies | 0.14 | 1.18 | 1.09 |
| Low | High | |
| Unlevered beta | 0.73 | 1.1 |
| Relevered beta | 3.55 | 5.19 |
| Adjusted relevered beta | 2.71 | 3.81 |
IMS.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 IMS.MI:
cost_of_equity (33.15%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (2.71) + 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.