NAS.OL
Norwegian Air Shuttle ASA
Price:  
14.05 
NOK
Volume:  
9,409,907.00
Norway | Airlines
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NAS.OL WACC - Weighted Average Cost of Capital

The WACC of Norwegian Air Shuttle ASA (NAS.OL) is 8.0%.

The Cost of Equity of Norwegian Air Shuttle ASA (NAS.OL) is 9.70%.
The Cost of Debt of Norwegian Air Shuttle ASA (NAS.OL) is 6.50%.

Range Selected
Cost of equity 8.20% - 11.20% 9.70%
Tax rate 2.30% - 3.80% 3.05%
Cost of debt 6.00% - 7.00% 6.50%
WACC 7.1% - 9.0% 8.0%
WACC

NAS.OL WACC calculation

Category Low High
Long-term bond rate 3.3% 3.8%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.95 1.12
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 11.20%
Tax rate 2.30% 3.80%
Debt/Equity ratio 0.96 0.96
Cost of debt 6.00% 7.00%
After-tax WACC 7.1% 9.0%
Selected WACC 8.0%

NAS.OL'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 NAS.OL:

cost_of_equity (9.70%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.95) + 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.