PRY.MI WACC - Weighted Average Cost of Capital

The WACC of Prysmian SpA (PRY.MI) is 10.6%.

The Cost of Equity of Prysmian SpA (PRY.MI) is 11.95%.

The Cost of Debt of Prysmian SpA (PRY.MI) is 5.10%.

	Range	Selected
Cost of equity	10.60% - 13.30%	11.95%
Tax rate	26.50% - 29.50%	28.00%
Cost of debt	4.90% - 5.30%	5.10%
WACC	9.5% - 11.8%	10.6%

WACC

PRY.MI WACC calculation

Category	Low	High

Long-term bond rate	3.7%	4.2%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.83	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	13.30%

Tax rate	26.50%	29.50%
Debt/Equity ratio	0.19	0.19
Cost of debt	4.90%	5.30%

After-tax WACC	9.5%	11.8%


Selected WACC	10.6%

PRY.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 PRY.MI:

cost_of_equity (11.95%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.83) + 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.