MASI.MI WACC - Weighted Average Cost of Capital
The WACC of Masi Agricola SpA (MASI.MI) is 8.1%.
| Range | Selected | |
| Cost of equity | 7.6% - 9.4% | 8.5% |
| Tax rate | 33.1% - 42.7% | 37.9% |
| Cost of debt | 4.0% - 20.7% | 12.35% |
| WACC | 6.2% - 10.1% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.48 | 0.51 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.6% | 9.4% |
| Tax rate | 33.1% | 42.7% |
| Debt/Equity ratio | 0.41 | 0.41 |
| Cost of debt | 4.0% | 20.7% |
| After-tax WACC | 6.2% | 10.1% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MASI.MI | Masi Agricola SpA | 0.41 | 0.16 | 0.13 |
| AMB.WA | Ambra SA | 0.21 | 0.35 | 0.31 |
| BAL1R.RG | Latvijas balzams AS | 0.05 | 0.11 | 0.11 |
| BDL.MC | Baron de Ley SA | 0 | 0.21 | 0.21 |
| BOLS.AS | Lucas Bols Amsterdam BV | 0.29 | 0.24 | 0.2 |
| IWB.MI | Italian Wine Brands SpA | 0.96 | 0.33 | 0.2 |
| KTILA.AT | Ktima Kostas Lazaridis SA | 0.35 | 0.15 | 0.12 |
| LINDA.TL | Linda Nektar AS | 0 | 0.87 | 0.87 |
| RIO.MC | Bodegas Riojanas SA | 1.49 | 0.03 | 0.01 |
| ZWACK.BD | Zwack Unicum Likoripari es Kereskedelmi Nyrt | 0 | 0.47 | 0.47 |
| Low | High | |
| Unlevered beta | 0.17 | 0.21 |
| Relevered beta | 0.22 | 0.27 |
| Adjusted relevered beta | 0.48 | 0.51 |
MASI.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 MASI.MI:
cost_of_equity (8.50%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.48) + 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.