ITM.MI WACC - Weighted Average Cost of Capital
The WACC of Italmobiliare SpA (ITM.MI) is 9.5%.
| Range | Selected | |
| Cost of equity | 10.4% - 13.5% | 11.95% |
| Tax rate | 18.4% - 22.4% | 20.4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.5% - 10.5% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.82 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.4% | 13.5% |
| Tax rate | 18.4% | 22.4% |
| Debt/Equity ratio | 0.45 | 0.45 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.5% | 10.5% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ITM.MI | Italmobiliare SpA | 0.45 | 0.73 | 0.54 |
| AFK.OL | Arendals Fossekompani ASA | 0.26 | 0.15 | 0.12 |
| BERA.IS | Bera Holding AS | 0.34 | 0.97 | 0.76 |
| CIR.MI | CIR SpA - Compagnie Industriali Riunite | 2.03 | 0.63 | 0.24 |
| GKI.WA | Grupa Kapitalowa Immobile SA | 2.06 | 0.35 | 0.13 |
| INH.DE | Indus Holding AG | 1.2 | 1.04 | 0.52 |
| LIFCO B.ST | Lifco AB (publ) | 0.06 | 1.07 | 1.01 |
| MZHLD.IS | Mazhar Zorlu Holding AS | 0.01 | 0.98 | 0.97 |
| NOLA B.ST | Nolato AB | 0.11 | 0.87 | 0.8 |
| SISE.IS | Turkiye Sise ve Cam Fabrikalari AS | 0.61 | 0.92 | 0.61 |
| Low | High | |
| Unlevered beta | 0.53 | 0.67 |
| Relevered beta | 0.73 | 0.93 |
| Adjusted relevered beta | 0.82 | 0.95 |
ITM.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 ITM.MI:
cost_of_equity (11.95%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.82) + 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.