NAH.L
NAHL Group PLC
Price:  
60.00 
GBP
Volume:  
6,116.00
United Kingdom | Media
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

NAH.L WACC - Weighted Average Cost of Capital

The WACC of NAHL Group PLC (NAH.L) is 7.8%.

The Cost of Equity of NAHL Group PLC (NAH.L) is 9.35%.
The Cost of Debt of NAHL Group PLC (NAH.L) is 4.75%.

Range Selected
Cost of equity 7.30% - 11.40% 9.35%
Tax rate 3.50% - 6.00% 4.75%
Cost of debt 4.00% - 5.50% 4.75%
WACC 6.2% - 9.4% 7.8%
WACC

NAH.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.55 0.92
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 11.40%
Tax rate 3.50% 6.00%
Debt/Equity ratio 0.47 0.47
Cost of debt 4.00% 5.50%
After-tax WACC 6.2% 9.4%
Selected WACC 7.8%

NAH.L'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 NAH.L:

cost_of_equity (9.35%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.55) + 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.