NCC.AX
NAOS Emerging Opportunities Company Ltd
Price:  
0.28 
AUD
Volume:  
80,602.00
Australia | N/A
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NCC.AX WACC - Weighted Average Cost of Capital

The WACC of NAOS Emerging Opportunities Company Ltd (NCC.AX) is 6.4%.

The Cost of Equity of NAOS Emerging Opportunities Company Ltd (NCC.AX) is 9.85%.
The Cost of Debt of NAOS Emerging Opportunities Company Ltd (NCC.AX) is 4.70%.

Range Selected
Cost of equity 8.70% - 11.00% 9.85%
Tax rate 28.20% - 39.90% 34.05%
Cost of debt 4.70% - 4.70% 4.70%
WACC 6.0% - 6.9% 6.4%
WACC

NCC.AX WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.91 0.98
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.70% 11.00%
Tax rate 28.20% 39.90%
Debt/Equity ratio 1.02 1.02
Cost of debt 4.70% 4.70%
After-tax WACC 6.0% 6.9%
Selected WACC 6.4%

NCC.AX'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 NCC.AX:

cost_of_equity (9.85%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.91) + 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.