VIM.MI WACC - Weighted Average Cost of Capital

The WACC of Vimi Fasteners SpA (VIM.MI) is 8.6%.

The Cost of Equity of Vimi Fasteners SpA (VIM.MI) is 8.45%.

The Cost of Debt of Vimi Fasteners SpA (VIM.MI) is 9.70%.

	Range	Selected
Cost of equity	7.10% - 9.80%	8.45%
Tax rate	9.70% - 10.80%	10.25%
Cost of debt	4.00% - 15.40%	9.70%
WACC	5.2% - 12.0%	8.6%

WACC

VIM.MI WACC calculation

Category	Low	High

Long-term bond rate	3.7%	4.2%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.42	0.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.10%	9.80%

Tax rate	9.70%	10.80%
Debt/Equity ratio	1.19	1.19
Cost of debt	4.00%	15.40%

After-tax WACC	5.2%	12.0%


Selected WACC	8.6%

VIM.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 VIM.MI:

cost_of_equity (8.45%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.42) + 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.