NBA.LS WACC - Weighted Average Cost of Capital
The WACC of Novabase SGPS SA (NBA.LS) is 7.0%.
| Range | Selected | |
| Cost of equity | 5.4% - 9.1% | 7.25% |
| Tax rate | 28.9% - 32.3% | 30.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.2% - 8.7% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.37 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 9.1% |
| Tax rate | 28.9% | 32.3% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.2% | 8.7% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NBA.LS | Novabase SGPS SA | 0.08 | 0.53 | 0.5 |
| ALPRO.PA | Prodware SA | 2.08 | 0.13 | 0.05 |
| CTAC.AS | Ctac NV | 0.18 | -0.02 | -0.02 |
| DIGIA.HE | Digia Oyj | 0.16 | 0.53 | 0.47 |
| MUN.PA | Micropole SA | 1.1 | 0.87 | 0.5 |
| OBS.DE | Orbis AG | 0.14 | 0.02 | 0.02 |
| ORIGO.IC | Origo hf | 0.26 | 1.03 | 0.87 |
| PRO.WA | APN Promise SA | 0.01 | 1.14 | 1.14 |
| RCN.L | Redcentric PLC | 0.37 | 0.01 | 0.01 |
| SHF.DE | SNP Schneider Neureither & Partner SE | 0.18 | 0.05 | 0.05 |
| Low | High | |
| Unlevered beta | 0.05 | 0.48 |
| Relevered beta | 0.06 | 0.51 |
| Adjusted relevered beta | 0.37 | 0.67 |
NBA.LS'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 NBA.LS:
cost_of_equity (7.25%) = risk_free_rate (3.15%) + equity_risk_premium (7.35%) * adjusted_beta (0.37) + 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.