RN.MI WACC - Weighted Average Cost of Capital
The WACC of Risanamento SpA (RN.MI) is 7.4%.
| Range | Selected | |
| Cost of equity | 6.5% - 8.3% | 7.4% |
| Tax rate | 1.9% - 4.8% | 3.35% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.5% - 8.3% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.34 | 0.39 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 8.3% |
| Tax rate | 1.9% | 4.8% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.5% | 8.3% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| RN.MI | Risanamento SpA | 0 | 0.52 | 0.52 |
| BEVER.AS | Bever Holding NV | 0.02 | 0.4 | 0.39 |
| BRI.MI | Brioschi Sviluppo Immobiliare SpA | 1.76 | 0.53 | 0.2 |
| CPG.WA | Capital Park SA | 1.09 | 0.01 | 0.01 |
| CZT.WA | Czerwona Torebka SA | 0.01 | -0.22 | -0.22 |
| FPO.L | First Property Group PLC | 0.57 | 0.35 | 0.23 |
| KAMP.AT | REDS Real Estate Development and Services SA | 0.2 | -0.4 | -0.34 |
| PLAZ.L | Plaza Centers NV | 21.52 | 0.46 | 0.02 |
| RHD.WA | Reinhold Europe AB | 0.21 | -0.39 | -0.33 |
| SFPN.SW | SF Urban Properties AG | 1.14 | 0.05 | 0.02 |
| Low | High | |
| Unlevered beta | 0.01 | 0.09 |
| Relevered beta | 0.01 | 0.09 |
| Adjusted relevered beta | 0.34 | 0.39 |
RN.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 RN.MI:
cost_of_equity (7.40%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.34) + 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.