The WACC of Nordecon AS (NCN1T.TL) is 9.2%.
Range | Selected | |
Cost of equity | 11.8% - 14.5% | 13.15% |
Tax rate | 10.5% - 13.5% | 12% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 8.5% - 10.0% | 9.2% |
Category | Low | High |
Long-term bond rate | 5.9% | 6.4% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 0.97 | 1.07 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 11.8% | 14.5% |
Tax rate | 10.5% | 13.5% |
Debt/Equity ratio | 0.81 | 0.81 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 8.5% | 10.0% |
Selected WACC | 9.2% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
NCN1T.TL | Nordecon AS | 0.81 | 0.8 | 0.46 |
CONSTI.HE | Consti Oyj | 0.17 | 0.49 | 0.43 |
INKAT.AT | Intracom Constructions Technical and Steel Constructions SA | 0.26 | -0.04 | -0.04 |
MRB.WA | Mirbud SA | 0.17 | 0.7 | 0.61 |
MRK1T.TL | Merko Ehitus AS | 0.17 | 1 | 0.87 |
MSW.WA | Mostostal Warszawa SA | 1.44 | 0.5 | 0.22 |
NMCN.L | NMCN PLC | 0.23 | 0.96 | 0.8 |
PTR1L.VS | Panevezio Statybos Trestas AB | 1.94 | 1.83 | 0.67 |
PXM.WA | Polimex Mostostal SA | 0.13 | 1.19 | 1.06 |
TOR.WA | Torpol SA | 0.09 | 0.67 | 0.62 |
Low | High | |
Unlevered beta | 0.55 | 0.64 |
Relevered beta | 0.96 | 1.1 |
Adjusted relevered beta | 0.97 | 1.07 |
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 NCN1T.TL:
cost_of_equity (13.15%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (0.97) + 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.