NBI.MC WACC - Weighted Average Cost of Capital
The WACC of NBI Bearings Europe SA (NBI.MC) is 6.3%.
| Range | Selected | |
| Cost of equity | 7.3% - 10.3% | 8.8% |
| Tax rate | 30.0% - 34.8% | 32.4% |
| Cost of debt | 4.5% - 5.3% | 4.9% |
| WACC | 5.4% - 7.2% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.56 | 0.73 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.3% | 10.3% |
| Tax rate | 30.0% | 34.8% |
| Debt/Equity ratio | 0.84 | 0.84 |
| Cost of debt | 4.5% | 5.3% |
| After-tax WACC | 5.4% | 7.2% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NBI.MC | NBI Bearings Europe SA | 0.84 | 0.23 | 0.14 |
| ALTRI.PA | Trilogiq SA | 0 | 0.56 | 0.56 |
| ALTUV.PA | Bio-UV Group SA | 1.02 | 0.41 | 0.24 |
| ESAU.MI | Esautomotion SpA | 0.04 | 0.14 | 0.14 |
| GJ.CO | Glunz & Jensen Holding A/S | 0.57 | 0.27 | 0.19 |
| HDR.WA | Przedsiebiorstwo Hydrauliki Silowej Hydrotor SA | 0.69 | 0.41 | 0.28 |
| ILP.MI | ILPRA SpA | 0.56 | 0.25 | 0.18 |
| SNX.WA | Sunex SA | 0.62 | 0.77 | 0.54 |
| TUCLK.IS | Tugcelik Aluminyum ve Metal Mamulleri Sanayi ve Ticaret AS | 0.48 | 0.78 | 0.59 |
| UUTEC.HE | Plc Uutechnic Group Oyj | 0.07 | 0.76 | 0.73 |
| Low | High | |
| Unlevered beta | 0.22 | 0.38 |
| Relevered beta | 0.34 | 0.6 |
| Adjusted relevered beta | 0.56 | 0.73 |
NBI.MC'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.MC:
cost_of_equity (8.80%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.56) + 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.