IWB.MI
Italian Wine Brands SpA
Price:  
20.50 
EUR
Volume:  
14,551.00
Italy | Beverages
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IWB.MI WACC - Weighted Average Cost of Capital

The WACC of Italian Wine Brands SpA (IWB.MI) is 7.5%.

The Cost of Equity of Italian Wine Brands SpA (IWB.MI) is 10.75%.
The Cost of Debt of Italian Wine Brands SpA (IWB.MI) is 5.00%.

Range Selected
Cost of equity 8.40% - 13.10% 10.75%
Tax rate 18.30% - 21.00% 19.65%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.3% - 8.6% 7.5%
WACC

IWB.MI WACC calculation

Category Low High
Long-term bond rate 3.7% 4.2%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.57 0.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 13.10%
Tax rate 18.30% 21.00%
Debt/Equity ratio 0.96 0.96
Cost of debt 5.00% 5.00%
After-tax WACC 6.3% 8.6%
Selected WACC 7.5%

IWB.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 IWB.MI:

cost_of_equity (10.75%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.57) + 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.