RCS.MI
Rizzoli Corriere della Sera Mediagroup SpA
Price:  
0.97 
EUR
Volume:  
128,505.00
Italy | Media
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RCS.MI WACC - Weighted Average Cost of Capital

The WACC of Rizzoli Corriere della Sera Mediagroup SpA (RCS.MI) is 9.1%.

The Cost of Equity of Rizzoli Corriere della Sera Mediagroup SpA (RCS.MI) is 10.90%.
The Cost of Debt of Rizzoli Corriere della Sera Mediagroup SpA (RCS.MI) is 5.00%.

Range Selected
Cost of equity 9.50% - 12.30% 10.90%
Tax rate 15.60% - 20.30% 17.95%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.1% - 10.1% 9.1%
WACC

RCS.MI WACC calculation

Category Low High
Long-term bond rate 3.7% 4.2%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.7 0.82
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.50% 12.30%
Tax rate 15.60% 20.30%
Debt/Equity ratio 0.36 0.36
Cost of debt 5.00% 5.00%
After-tax WACC 8.1% 10.1%
Selected WACC 9.1%

RCS.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 RCS.MI:

cost_of_equity (10.90%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.7) + 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.