US.MI WACC - Weighted Average Cost of Capital
The WACC of UnipolSai Assicurazioni SpA (US.MI) is 8.4%.
| Range | Selected | |
| Cost of equity | 9.3% - 11.7% | 10.5% |
| Tax rate | 24.4% - 24.9% | 24.65% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.6% - 9.2% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.68 | 0.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.3% | 11.7% |
| Tax rate | 24.4% | 24.9% |
| Debt/Equity ratio | 0.44 | 0.44 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.6% | 9.2% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| US.MI | UnipolSai Assicurazioni SpA | 0.44 | 0.4 | 0.3 |
| BALN.SW | Baloise Holding AG | 0.28 | 0.57 | 0.47 |
| GJF.OL | Gjensidige Forsikring ASA | 0.04 | 0.16 | 0.16 |
| HELN.SW | Helvetia Holding AG | 0.2 | 0.56 | 0.48 |
| MAP.MC | Mapfre SA | 0.25 | 0.89 | 0.75 |
| PZU.WA | Powszechny Zaklad Ubezpieczen SA | 6.86 | 0.9 | 0.15 |
| SAMPO.HE | Sampo plc | 0.11 | 0.49 | 0.45 |
| TOP.CO | Topdanmark A/S | 0.04 | -0.03 | -0.03 |
| UNI.MI | Unipol Gruppo SpA | 0.47 | 1.08 | 0.8 |
| VIG.VI | Vienna Insurance Group AG Wiener Versicherung Gruppe | 0.31 | 0.73 | 0.59 |
| Low | High | |
| Unlevered beta | 0.39 | 0.47 |
| Relevered beta | 0.52 | 0.63 |
| Adjusted relevered beta | 0.68 | 0.75 |
US.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 US.MI:
cost_of_equity (10.50%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.68) + 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.