ZUC.MI WACC - Weighted Average Cost of Capital

The WACC of Vincenzo Zucchi SpA (ZUC.MI) is 6.8%.

The Cost of Equity of Vincenzo Zucchi SpA (ZUC.MI) is 13.45%.

The Cost of Debt of Vincenzo Zucchi SpA (ZUC.MI) is 4.45%.

	Range	Selected
Cost of equity	10.40% - 16.50%	13.45%
Tax rate	19.40% - 35.40%	27.40%
Cost of debt	4.00% - 4.90%	4.45%
WACC	5.8% - 7.9%	6.8%

WACC

ZUC.MI WACC calculation

Category	Low	High

Long-term bond rate	3.7%	4.2%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.82	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	16.50%

Tax rate	19.40%	35.40%
Debt/Equity ratio	1.83	1.83
Cost of debt	4.00%	4.90%

After-tax WACC	5.8%	7.9%


Selected WACC	6.8%

ZUC.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 ZUC.MI:

cost_of_equity (13.45%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.82) + 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.