NAUH
National American University Holdings Inc
Price:  
0.03 
USD
Volume:  
2,610.00
United States | Diversified Consumer Services
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NAUH WACC - Weighted Average Cost of Capital

The WACC of National American University Holdings Inc (NAUH) is 5.7%.

The Cost of Equity of National American University Holdings Inc (NAUH) is 6.55%.
The Cost of Debt of National American University Holdings Inc (NAUH) is 7.05%.

Range Selected
Cost of equity 5.20% - 7.90% 6.55%
Tax rate 12.90% - 26.10% 19.50%
Cost of debt 7.00% - 7.10% 7.05%
WACC 6.1% - 5.3% 5.7%
WACC

NAUH WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.07 0.36
Additional risk adjustments 1.0% 1.5%
Cost of equity 5.20% 7.90%
Tax rate 12.90% 26.10%
Debt/Equity ratio 37.05 37.05
Cost of debt 7.00% 7.10%
After-tax WACC 6.1% 5.3%
Selected WACC 5.7%

NAUH'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 NAUH:

cost_of_equity (6.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.07) + risk_adjustments (1.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.