MASI.MI WACC - Weighted Average Cost of Capital

The WACC of Masi Agricola SpA (MASI.MI) is 8.1%.

The Cost of Equity of Masi Agricola SpA (MASI.MI) is 8.50%.

The Cost of Debt of Masi Agricola SpA (MASI.MI) is 12.35%.

	Range	Selected
Cost of equity	7.60% - 9.40%	8.50%
Tax rate	33.10% - 42.70%	37.90%
Cost of debt	4.00% - 20.70%	12.35%
WACC	6.2% - 10.1%	8.1%

WACC

MASI.MI WACC calculation

Category	Low	High

Long-term bond rate	3.7%	4.2%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.48	0.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	9.40%

Tax rate	33.10%	42.70%
Debt/Equity ratio	0.41	0.41
Cost of debt	4.00%	20.70%

After-tax WACC	6.2%	10.1%


Selected WACC	8.1%

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.