The WACC of NAHL Group PLC (NAH.L) is 6.6%.
Range | Selected | |
Cost of equity | 6.5% - 8.2% | 7.35% |
Tax rate | 1.5% - 3.1% | 2.3% |
Cost of debt | 4.4% - 5.5% | 4.95% |
WACC | 5.9% - 7.3% | 6.6% |
Category | Low | High |
Long-term bond rate | 4.0% | 4.5% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.42 | 0.46 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.5% | 8.2% |
Tax rate | 1.5% | 3.1% |
Debt/Equity ratio | 0.43 | 0.43 |
Cost of debt | 4.4% | 5.5% |
After-tax WACC | 5.9% | 7.3% |
Selected WACC | 6.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
NAH.L | NAHL Group PLC | 0.43 | 0.9 | 0.64 |
ALMIL.PA | 1000mercis SA | 0.62 | 0.3 | 0.19 |
ALPRI.PA | Prismaflex International SA | 1.2 | 0.54 | 0.25 |
CBDG.PA | Compagnie du Cambodge SA | 0.01 | 0.1 | 0.1 |
DTR.WA | Digitree Group SA | 0.1 | 0.1 | 0.09 |
EBQ.L | Ebiquity PLC | 0.84 | -0.02 | -0.01 |
EDI.PA | Media 6 SA | 0.52 | -0.06 | -0.04 |
LRQ.WA | Larq SA | 0.57 | 0.11 | 0.07 |
MDZ.L | Mediazest PLC | 1.66 | 0.26 | 0.1 |
SYZ.DE | Syzygy AG | 0.56 | 0.31 | 0.2 |
Low | High | |
Unlevered beta | 0.1 | 0.14 |
Relevered beta | 0.13 | 0.19 |
Adjusted relevered beta | 0.42 | 0.46 |
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 NAH.L:
cost_of_equity (7.35%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.42) + 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.