TB.MI
Triboo SpA
Price:  
0.46 
EUR
Volume:  
237,677.00
Italy | Media
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TB.MI WACC - Weighted Average Cost of Capital

The WACC of Triboo SpA (TB.MI) is 4.6%.

The Cost of Equity of Triboo SpA (TB.MI) is 9.25%.
The Cost of Debt of Triboo SpA (TB.MI) is 5.00%.

Range Selected
Cost of equity 8.00% - 10.50% 9.25%
Tax rate 39.40% - 48.30% 43.85%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.4% - 4.8% 4.6%
WACC

TB.MI WACC calculation

Category Low High
Long-term bond rate 3.7% 4.2%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.52 0.63
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 10.50%
Tax rate 39.40% 48.30%
Debt/Equity ratio 2.64 2.64
Cost of debt 5.00% 5.00%
After-tax WACC 4.4% 4.8%
Selected WACC 4.6%

TB.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 TB.MI:

cost_of_equity (9.25%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.52) + 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.