The WACC of Monrif SpA (MON.MI) is 6.1%.
Range | Selected | |
Cost of equity | 24.0% - 47.1% | 35.55% |
Tax rate | 28.5% - 39.7% | 34.1% |
Cost of debt | 4.5% - 4.9% | 4.7% |
WACC | 5.1% - 7.0% | 6.1% |
Category | Low | High |
Long-term bond rate | 3.7% | 4.2% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 2.44 | 4.55 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 24.0% | 47.1% |
Tax rate | 28.5% | 39.7% |
Debt/Equity ratio | 9.78 | 9.78 |
Cost of debt | 4.5% | 4.9% |
After-tax WACC | 5.1% | 7.0% |
Selected WACC | 6.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
MON.MI | Monrif SpA | 9.78 | 0.19 | 0.02 |
BMY.L | Bloomsbury Publishing PLC | 0.08 | 0.79 | 0.75 |
CED.MI | Caltagirone Editore SpA | 0.13 | 0.64 | 0.58 |
HURGZ.IS | Hurriyet Gazetecilik ve Matbaacilik AS | 0.02 | 1.18 | 1.16 |
IHGZT.IS | Ihlas Gazetecilik AS | 0.04 | 0.93 | 0.91 |
IHYAY.IS | Ihlas Yayin Holding AS | 0.17 | 1.3 | 1.17 |
KSLAV.HE | Keskisuomalainen Oyj | 0.57 | 0.25 | 0.18 |
PUMU.HE | PunaMusta Media Oyj | 3.18 | 0.34 | 0.11 |
S24.MI | Il Sole 24 Ore SpA | 1.29 | 0.05 | 0.02 |
SBV.SG | Schwabenverlag AG | 0.13 | 1.62 | 1.49 |
Low | High | |
Unlevered beta | 0.42 | 0.81 |
Relevered beta | 3.15 | 6.3 |
Adjusted relevered beta | 2.44 | 4.55 |
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 MON.MI:
cost_of_equity (35.55%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (2.44) + 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.