SOS.MI WACC - Weighted Average Cost of Capital
The WACC of SosTravel.com SpA (SOS.MI) is 6.7%.
| Range | Selected | |
| Cost of equity | 6.8% - 9.0% | 7.9% |
| Tax rate | 14.7% - 36.7% | 25.7% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.1% - 7.4% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.38 | 0.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 9.0% |
| Tax rate | 14.7% | 36.7% |
| Debt/Equity ratio | 0.37 | 0.37 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.1% | 7.4% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SOS.MI | SosTravel.com SpA | 0.37 | 0.22 | 0.17 |
| ALALO.PA | Acheter Louer Fr SA | 28.21 | -0.71 | -0.03 |
| ALFIL.PA | Filae SA | 0.09 | 0.34 | 0.32 |
| ALPLA.PA | Planet Media SA | 6.67 | -0.84 | -0.14 |
| CPL.WA | Comperia.pl SA | 0.08 | 0.12 | 0.11 |
| CTM.ST | Catena Media PLC | 1.62 | 0.34 | 0.15 |
| DBOX.L | Digitalbox PLC | 0.02 | -0.05 | -0.05 |
| IEX.AS | IEX Group NV | 0.15 | 0.8 | 0.72 |
| MYRK.DE | MyHammer Holding AG | 0.01 | 0.16 | 0.16 |
| OTMP.L | Onthemarket PLC | 0.01 | -0.88 | -0.87 |
| Low | High | |
| Unlevered beta | 0.05 | 0.16 |
| Relevered beta | 0.07 | 0.19 |
| Adjusted relevered beta | 0.38 | 0.46 |
SOS.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 SOS.MI:
cost_of_equity (7.90%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.38) + 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.