NANO.L
Nanoco Group PLC
Price:  
12.30 
GBP
Volume:  
2,619,770.00
United Kingdom | Semiconductors & Semiconductor Equipment
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

NANO.L WACC - Weighted Average Cost of Capital

The WACC of Nanoco Group PLC (NANO.L) is 8.0%.

The Cost of Equity of Nanoco Group PLC (NANO.L) is 7.30%.
The Cost of Debt of Nanoco Group PLC (NANO.L) is 19.05%.

Range Selected
Cost of equity 6.40% - 8.20% 7.30%
Tax rate 14.40% - 15.30% 14.85%
Cost of debt 7.00% - 31.10% 19.05%
WACC 6.4% - 9.7% 8.0%
WACC

NANO.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.4 0.45
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 8.20%
Tax rate 14.40% 15.30%
Debt/Equity ratio 0.09 0.09
Cost of debt 7.00% 31.10%
After-tax WACC 6.4% 9.7%
Selected WACC 8.0%

NANO.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 NANO.L:

cost_of_equity (7.30%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.4) + 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.