WEB.MI
Websolute SpA
Price:  
1.82 
EUR
Volume:  
550.00
Italy | Interactive Media & Services
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WEB.MI WACC - Weighted Average Cost of Capital

The WACC of Websolute SpA (WEB.MI) is 7.2%.

The Cost of Equity of Websolute SpA (WEB.MI) is 8.40%.
The Cost of Debt of Websolute SpA (WEB.MI) is 5.00%.

Range Selected
Cost of equity 7.30% - 9.50% 8.40%
Tax rate 24.00% - 24.00% 24.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.4% - 8.1% 7.2%
WACC

WEB.MI WACC calculation

Category Low High
Long-term bond rate 4.3% 4.8%
Equity market risk premium 8.8% 9.8%
Adjusted beta 0.34 0.43
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 9.50%
Tax rate 24.00% 24.00%
Debt/Equity ratio 0.35 0.35
Cost of debt 5.00% 5.00%
After-tax WACC 6.4% 8.1%
Selected WACC 7.2%

WEB.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 WEB.MI:

cost_of_equity (8.40%) = risk_free_rate (4.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.34) + 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.