ITD.MI WACC - Weighted Average Cost of Capital
The WACC of Intred SpA (ITD.MI) is 8.1%.
| Range | Selected | |
| Cost of equity | 7.6% - 10.3% | 8.95% |
| Tax rate | 28.4% - 28.8% | 28.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.0% - 9.3% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.47 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.6% | 10.3% |
| Tax rate | 28.4% | 28.8% |
| Debt/Equity ratio | 0.18 | 0.18 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.0% | 9.3% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ITD.MI | Intred SpA | 0.18 | 0.43 | 0.38 |
| ALBUD.PA | Mint SA | 0.01 | -0.05 | -0.05 |
| BBB.L | Bigblu Broadband PLC | 0.22 | -0.91 | -0.78 |
| BRE2.ST | Bredband2 i Skandinavien AB | 0.13 | 0.22 | 0.2 |
| CALL.L | Cloudcall Group PLC | 0.1 | 1.4 | 1.31 |
| GO.MI | GO internet SpA | 2.15 | -0.13 | -0.05 |
| LIT.MI | Reti Telematiche Italiane SpA | 0.37 | 0.72 | 0.57 |
| NFN.DE | NFON AG | 0.09 | 0.19 | 0.18 |
| TIS.MI | Tiscali SpA | 0.79 | 1.15 | 0.74 |
| TRANS.ST | Transtema Group AB | 0.69 | 0.53 | 0.36 |
| Low | High | |
| Unlevered beta | 0.19 | 0.37 |
| Relevered beta | 0.21 | 0.42 |
| Adjusted relevered beta | 0.47 | 0.61 |
ITD.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 ITD.MI:
cost_of_equity (8.95%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.47) + 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.