NBC.BK WACC - Weighted Average Cost of Capital
The WACC of Nation Broadcasting Corporation PCL (NBC.BK) is 8.3%.
| Range | Selected | |
| Cost of equity | 6.6% - 10.3% | 8.45% |
| Tax rate | 20.0% - 20.0% | 20% |
| Cost of debt | 7.0% - 7.9% | 7.45% |
| WACC | 6.5% - 10.1% | 8.3% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.5 | 0.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 10.3% |
| Tax rate | 20.0% | 20.0% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 7.0% | 7.9% |
| After-tax WACC | 6.5% | 10.1% |
| Selected WACC | 8.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NBC.BK | Nation Broadcasting Corporation PCL | 0.08 | 0.85 | 0.8 |
| 052220.KQ | iMBC Co Ltd | 0.01 | 0.79 | 0.78 |
| 471.HK | CMMB Vision Holdings Ltd | 1.32 | 1.01 | 0.49 |
| 9928.TW | China Television Co | 1.92 | 0.25 | 0.1 |
| BEC.BK | BEC World PCL | 0.28 | 0.92 | 0.75 |
| JUMPNET.NS | Jump Networks Ltd | 0.01 | 0.97 | 0.96 |
| MCOT.BK | MCOT PCL | 0.35 | 2.09 | 1.63 |
| MONO.BK | Mono Next PCL | 0.22 | 2.63 | 2.23 |
| ODVA.ME | Mediaholding PAO | 8.9 | -0.07 | -0.01 |
| SEG.AX | Sports Entertainment Group Ltd | 0.67 | -0.5 | -0.33 |
| Low | High | |
| Unlevered beta | 0.64 | 0.79 |
| Relevered beta | 0.25 | 0.63 |
| Adjusted relevered beta | 0.5 | 0.75 |
NBC.BK'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 NBC.BK:
cost_of_equity (8.45%) = risk_free_rate (2.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.5) + 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.