NC WACC - Weighted Average Cost of Capital
The WACC of NACCO Industries Inc (NC) is 7.6%.
| Range | Selected | |
| Cost of equity | 6.1% - 9.2% | 7.65% |
| Tax rate | 10.6% - 15.4% | 13% |
| Cost of debt | 7.0% - 10.0% | 8.5% |
| WACC | 6.1% - 9.0% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.48 | 0.77 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 9.2% |
| Tax rate | 10.6% | 15.4% |
| Debt/Equity ratio | 0.32 | 0.32 |
| Cost of debt | 7.0% | 10.0% |
| After-tax WACC | 6.1% | 9.0% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NC | NACCO Industries Inc | 0.32 | 0.9 | 0.71 |
| BSK.V | Blue Sky Uranium Corp | 0.01 | 0.3 | 0.3 |
| HNRG | Hallador Energy Co | 0.08 | 1.97 | 1.84 |
| NRP | Natural Resource Partners LP | 0.11 | 0.63 | 0.57 |
| PTU.V | Purepoint Uranium Group Inc | 0 | -0.27 | -0.27 |
| RHNO | Rhino Resource Partners LP | 300.79 | 1.59 | 0.01 |
| SGQ.TO | SouthGobi Resources Ltd | 8.04 | -1.45 | -0.19 |
| SML.V | Southstone Minerals Ltd | 2.46 | -2.08 | -0.67 |
| URE.TO | Ur-Energy Inc | 0 | 1.3 | 1.29 |
| WWR | Westwater Resources Inc | 0 | 0.47 | 0.47 |
| Low | High | |
| Unlevered beta | 0.18 | 0.51 |
| Relevered beta | 0.22 | 0.66 |
| Adjusted relevered beta | 0.48 | 0.77 |
NC'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 NC:
cost_of_equity (7.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.48) + 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.