LMG.MI
Lucisano Media Group SpA
Price:  
0.99 
EUR
Volume:  
800
Italy | Entertainment

LMG.MI WACC - Weighted Average Cost of Capital

The WACC of Lucisano Media Group SpA (LMG.MI) is 5.1%.

The Cost of Equity of Lucisano Media Group SpA (LMG.MI) is 7.15%.
The Cost of Debt of Lucisano Media Group SpA (LMG.MI) is 5%.

RangeSelected
Cost of equity5.8% - 8.5%7.15%
Tax rate13.5% - 14.7%14.1%
Cost of debt5.0% - 5.0%5%
WACC4.7% - 5.4%5.1%
WACC

LMG.MI WACC calculation

CategoryLowHigh
Long-term bond rate3.7%4.2%
Equity market risk premium8.3%9.3%
Adjusted beta0.250.41
Additional risk adjustments0.0%0.5%
Cost of equity5.8%8.5%
Tax rate13.5%14.7%
Debt/Equity ratio
2.62.6
Cost of debt5.0%5.0%
After-tax WACC4.7%5.4%
Selected WACC5.1%

LMG.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 LMG.MI:

cost_of_equity (7.15%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.25) + 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.