OLI.MI WACC - Weighted Average Cost of Capital

The WACC of OLIDATA SpA (OLI.MI) is 10.6%.

The Cost of Equity of OLIDATA SpA (OLI.MI) is 11.85%.

The Cost of Debt of OLIDATA SpA (OLI.MI) is 5.00%.

	Range	Selected
Cost of equity	10.40% - 13.30%	11.85%
Tax rate	32.10% - 37.80%	34.95%
Cost of debt	5.00% - 5.00%	5.00%
WACC	9.4% - 11.8%	10.6%

WACC

OLI.MI WACC calculation

Category	Low	High

Long-term bond rate	3.7%	4.2%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.81	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	13.30%

Tax rate	32.10%	37.80%
Debt/Equity ratio	0.17	0.17
Cost of debt	5.00%	5.00%

After-tax WACC	9.4%	11.8%


Selected WACC	10.6%

OLI.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 OLI.MI:

cost_of_equity (11.85%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.81) + 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.