UniCredit SpA (UCG.MI) WACC Analysis

As of June 3, 2025, UniCredit SpA (UCG.MI) carries a Weighted Average Cost of Capital (WACC) of 7.6%. WACC reflects the blended rate UniCredit SpA must pay to both equity and debt holders.

Within that, the cost of equity is 12.5%, the cost of debt is 5.0%, and the effective tax rate is 15.2%.

Breakdown of WACC Components

• Long-term bond rate: 3.7% – 4.2%
• Equity market risk premium: 8.3% – 9.3%
• Adjusted beta: 1.06 – 1.32
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 2.07

What It Means for Investors

With a selected WACC of 7.6%, UniCredit SpA must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.