ZV.MI WACC - Weighted Average Cost of Capital

The WACC of Zignago Vetro SpA (ZV.MI) is 9.7%.

The Cost of Equity of Zignago Vetro SpA (ZV.MI) is 10.30%.

The Cost of Debt of Zignago Vetro SpA (ZV.MI) is 8.75%.

	Range	Selected
Cost of equity	9.30% - 11.30%	10.30%
Tax rate	6.90% - 10.00%	8.45%
Cost of debt	5.30% - 12.20%	8.75%
WACC	8.2% - 11.2%	9.7%

WACC

ZV.MI WACC calculation

Category	Low	High

Long-term bond rate	3.7%	4.2%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.68	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	11.30%

Tax rate	6.90%	10.00%
Debt/Equity ratio	0.34	0.34
Cost of debt	5.30%	12.20%

After-tax WACC	8.2%	11.2%


Selected WACC	9.7%

ZV.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 ZV.MI:

cost_of_equity (10.30%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.68) + 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.