Acea SpA (ACE.MI) WACC Analysis

As of June 4, 2025, Acea SpA (ACE.MI) carries a Weighted Average Cost of Capital (WACC) of 6.2%. WACC reflects the blended rate Acea SpA must pay to both equity and debt holders.

Within that, the cost of equity is 9.2%, the cost of debt is 4.0%, and the effective tax rate is 30.6%.

Breakdown of WACC Components

• Long-term bond rate: 3.7% – 4.2%
• Equity market risk premium: 8.3% – 9.3%
• Adjusted beta: 0.67 – 0.73
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1.25

What It Means for Investors

With a selected WACC of 6.2%, Acea SpA must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.