NBI.L WACC - Weighted Average Cost of Capital
The WACC of Northbridge Industrial Services PLC (NBI.L) is 9.4%.
| Range | Selected | |
| Cost of equity | 8.5% - 11.3% | 9.9% |
| Tax rate | 18.4% - 26.0% | 22.2% |
| Cost of debt | 7.0% - 7.2% | 7.1% |
| WACC | 8.2% - 10.6% | 9.4% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 1.04 | 1.16 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 11.3% |
| Tax rate | 18.4% | 26.0% |
| Debt/Equity ratio | 0.12 | 0.12 |
| Cost of debt | 7.0% | 7.2% |
| After-tax WACC | 8.2% | 10.6% |
| Selected WACC | 9.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NBI.L | Northbridge Industrial Services PLC | 0.12 | 1.42 | 1.3 |
| 2GB.DE | 2G Energy AG | 0.02 | 1.02 | 1.01 |
| ALFEN.AS | Alfen NV | 0.21 | 1.5 | 1.29 |
| AZELIO.ST | Azelio AB | 0.67 | 1.25 | 0.82 |
| EPS.PA | Engie Eps SA | 0.12 | 1.06 | 0.97 |
| ITM.L | ITM Power PLC | 0.04 | 1.03 | 1 |
| PNE3.DE | PNE AG | 0.78 | 0.42 | 0.26 |
| PUE.WA | ZPUE SA | 0.41 | 0.66 | 0.5 |
| SAE.L | SIMEC Atlantis Energy Ltd | 3.26 | -1.08 | -0.31 |
| STW.ST | SeaTwirl AB (publ) | 0 | 0.83 | 0.83 |
| Low | High | |
| Unlevered beta | 0.83 | 0.98 |
| Relevered beta | 1.06 | 1.24 |
| Adjusted relevered beta | 1.04 | 1.16 |
NBI.L'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 NBI.L:
cost_of_equity (9.90%) = risk_free_rate (3.15%) + equity_risk_premium (5.80%) * adjusted_beta (1.04) + 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.