NATL WACC - Weighted Average Cost of Capital

The WACC of NCR Atleos Corp (NATL) is 7.3%.

The Cost of Equity of NCR Atleos Corp (NATL) is 10.35%.

The Cost of Debt of NCR Atleos Corp (NATL) is 5.50%.

	Range	Selected
Cost of equity	8.90% - 11.80%	10.35%
Tax rate	29.30% - 33.20%	31.25%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.1% - 8.6%	7.3%

WACC

NATL WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	1.09	1.24

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	11.80%

Tax rate	29.30%	33.20%
Debt/Equity ratio	0.84	0.84
Cost of debt	4.00%	7.00%

After-tax WACC	6.1%	8.6%


Selected WACC	7.3%

NATL'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 NATL:

cost_of_equity (10.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.09) + 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.