PRT.MI
Esprinet SpA
Price:  
4.19 
EUR
Volume:  
348,410.00
Italy | Electronic Equipment, Instruments & Components
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PRT.MI WACC - Weighted Average Cost of Capital

The WACC of Esprinet SpA (PRT.MI) is 9.5%.

The Cost of Equity of Esprinet SpA (PRT.MI) is 16.75%.
The Cost of Debt of Esprinet SpA (PRT.MI) is 4.70%.

Range Selected
Cost of equity 14.90% - 18.60% 16.75%
Tax rate 25.40% - 26.30% 25.85%
Cost of debt 4.00% - 5.40% 4.70%
WACC 8.4% - 10.6% 9.5%
WACC

PRT.MI WACC calculation

Category Low High
Long-term bond rate 3.7% 4.2%
Equity market risk premium 8.3% 9.3%
Adjusted beta 1.35 1.49
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.90% 18.60%
Tax rate 25.40% 26.30%
Debt/Equity ratio 1.21 1.21
Cost of debt 4.00% 5.40%
After-tax WACC 8.4% 10.6%
Selected WACC 9.5%

PRT.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 PRT.MI:

cost_of_equity (16.75%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (1.35) + 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.