NCC.L WACC - Weighted Average Cost of Capital
The WACC of NCC Group PLC (NCC.L) is 8.4%.
| Range | Selected | |
| Cost of equity | 8.4% - 10.6% | 9.5% |
| Tax rate | 23.1% - 27.0% | 25.05% |
| Cost of debt | 4.6% - 5.5% | 5.05% |
| WACC | 7.5% - 9.4% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.73 | 0.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 10.6% |
| Tax rate | 23.1% | 27.0% |
| Debt/Equity ratio | 0.23 | 0.23 |
| Cost of debt | 4.6% | 5.5% |
| After-tax WACC | 7.5% | 9.4% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NCC.L | NCC Group PLC | 0.23 | 0.59 | 0.5 |
| ANOD B.ST | Addnode Group AB (publ) | 0.15 | 0.46 | 0.41 |
| AUB.PA | Aubay SA | 0.04 | 0.74 | 0.72 |
| BOUV.OL | Bouvet ASA | 0.04 | 0.11 | 0.11 |
| CMR.WA | Comarch SA | 0.08 | 0.14 | 0.13 |
| D6H.DE | Datagroup SE | 0.41 | 1.18 | 0.9 |
| FDM.L | FDM Group (Holdings) PLC | 0.09 | 0.55 | 0.51 |
| KNOW.ST | Knowit AB (publ) | 0.26 | 0.97 | 0.81 |
| NA9.DE | Nagarro SE | 0.36 | 0.67 | 0.53 |
| WAVE.PA | Wavestone SA | 0.07 | 0.93 | 0.89 |
| Low | High | |
| Unlevered beta | 0.51 | 0.61 |
| Relevered beta | 0.6 | 0.72 |
| Adjusted relevered beta | 0.73 | 0.81 |
NCC.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 NCC.L:
cost_of_equity (9.50%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.73) + 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.