MON.MI
Monrif SpA
Price:  
0.05 
EUR
Volume:  
916,828
Italy | Media

MON.MI WACC - Weighted Average Cost of Capital

The WACC of Monrif SpA (MON.MI) is 6.1%.

The Cost of Equity of Monrif SpA (MON.MI) is 35.55%.
The Cost of Debt of Monrif SpA (MON.MI) is 4.7%.

RangeSelected
Cost of equity24.0% - 47.1%35.55%
Tax rate28.5% - 39.7%34.1%
Cost of debt4.5% - 4.9%4.7%
WACC5.1% - 7.0%6.1%
WACC

MON.MI WACC calculation

CategoryLowHigh
Long-term bond rate3.7%4.2%
Equity market risk premium8.3%9.3%
Adjusted beta2.444.55
Additional risk adjustments0.0%0.5%
Cost of equity24.0%47.1%
Tax rate28.5%39.7%
Debt/Equity ratio
9.789.78
Cost of debt4.5%4.9%
After-tax WACC5.1%7.0%
Selected WACC6.1%

MON.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 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.