WEB.MI WACC - Weighted Average Cost of Capital
The WACC of Websolute SpA (WEB.MI) is 7.2%.
| Range | Selected | |
| Cost of equity | 7.3% - 9.5% | 8.4% |
| Tax rate | 24.0% - 24.0% | 24% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.4% - 8.1% | 7.2% |
| 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 | 7.3% | 9.5% |
| Tax rate | 24.0% | 24.0% |
| Debt/Equity ratio | 0.35 | 0.35 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.4% | 8.1% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WEB.MI | Websolute SpA | 0.35 | 0.37 | 0.29 |
| ALALO.PA | Acheter Louer Fr SA | 6.3 | -1.99 | -0.34 |
| ALPLA.PA | Planet Media SA | 6.67 | -0.84 | -0.14 |
| ASWN.SW | Asmallworld AG | 0.2 | -0.12 | -0.1 |
| BBSN.L | Brave Bison Group PLC | 0.04 | -0.28 | -0.27 |
| XLM.L | XLMedia PLC | 1.01 | 0.15 | 0.09 |
| YOC.DE | Yoc AG | 0.04 | 0.88 | 0.85 |
| CNFN | Cfn Enterprises Inc | 0.33 | 0.93 | 0.74 |
| TPNI | Pulse Network Inc | 3420.46 | 1.28 | 0 |
| Low | High | |
| Unlevered beta | -0.08 | 0.07 |
| Relevered beta | 0.01 | 0.15 |
| Adjusted relevered beta | 0.34 | 0.43 |
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.