TLS.MI
Telesia SpA
Price:  
1.21 
EUR
Volume:  
1,200
Italy | Media

TLS.MI WACC - Weighted Average Cost of Capital

The WACC of Telesia SpA (TLS.MI) is 5.2%.

The Cost of Equity of Telesia SpA (TLS.MI) is 8.4%.
The Cost of Debt of Telesia SpA (TLS.MI) is 5%.

RangeSelected
Cost of equity7.1% - 9.7%8.4%
Tax rate24.0% - 24.0%24%
Cost of debt5.0% - 5.0%5%
WACC4.8% - 5.6%5.2%
WACC

TLS.MI WACC calculation

CategoryLowHigh
Long-term bond rate3.7%4.2%
Equity market risk premium8.3%9.3%
Adjusted beta0.410.54
Additional risk adjustments0.0%0.5%
Cost of equity7.1%9.7%
Tax rate24.0%24.0%
Debt/Equity ratio
2.342.34
Cost of debt5.0%5.0%
After-tax WACC4.8%5.6%
Selected WACC5.2%

TLS.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 TLS.MI:

cost_of_equity (8.40%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.41) + 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.