SERI.MI
Seri Industrial SpA
Price:  
2.23 
EUR
Volume:  
30,294.00
Italy | Electrical Equipment
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SERI.MI WACC - Weighted Average Cost of Capital

The WACC of Seri Industrial SpA (SERI.MI) is 10.9%.

The Cost of Equity of Seri Industrial SpA (SERI.MI) is 10.20%.
The Cost of Debt of Seri Industrial SpA (SERI.MI) is 14.95%.

Range Selected
Cost of equity 8.30% - 12.10% 10.20%
Tax rate 24.00% - 24.00% 24.00%
Cost of debt 6.20% - 23.70% 14.95%
WACC 6.1% - 15.6% 10.9%
WACC

SERI.MI WACC calculation

Category Low High
Long-term bond rate 3.7% 4.2%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.56 0.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.30% 12.10%
Tax rate 24.00% 24.00%
Debt/Equity ratio 1.53 1.53
Cost of debt 6.20% 23.70%
After-tax WACC 6.1% 15.6%
Selected WACC 10.9%

SERI.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 SERI.MI:

cost_of_equity (10.20%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.56) + 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.