WEB.MI
Websolute SpA
Price:  
1.82 
EUR
Volume:  
550
Italy | Interactive Media & Services

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 8.4%.
The Cost of Debt of Websolute SpA (WEB.MI) is 5%.

RangeSelected
Cost of equity7.3% - 9.5%8.4%
Tax rate24.0% - 24.0%24%
Cost of debt5.0% - 5.0%5%
WACC6.4% - 8.1%7.2%
WACC

WEB.MI WACC calculation

CategoryLowHigh
Long-term bond rate4.3%4.8%
Equity market risk premium8.8%9.8%
Adjusted beta0.340.43
Additional risk adjustments0.0%0.5%
Cost of equity7.3%9.5%
Tax rate24.0%24.0%
Debt/Equity ratio
0.350.35
Cost of debt5.0%5.0%
After-tax WACC6.4%8.1%
Selected WACC7.2%

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.