NCN1T.TL
Nordecon AS
Price:  
0.71 
EUR
Volume:  
6,771
Estonia | Construction & Engineering

NCN1T.TL WACC - Weighted Average Cost of Capital

The WACC of Nordecon AS (NCN1T.TL) is 9.2%.

The Cost of Equity of Nordecon AS (NCN1T.TL) is 13.15%.
The Cost of Debt of Nordecon AS (NCN1T.TL) is 5%.

RangeSelected
Cost of equity11.8% - 14.5%13.15%
Tax rate10.5% - 13.5%12%
Cost of debt5.0% - 5.0%5%
WACC8.5% - 10.0%9.2%
WACC

NCN1T.TL WACC calculation

CategoryLowHigh
Long-term bond rate5.9%6.4%
Equity market risk premium6.1%7.1%
Adjusted beta0.971.07
Additional risk adjustments0.0%0.5%
Cost of equity11.8%14.5%
Tax rate10.5%13.5%
Debt/Equity ratio
0.810.81
Cost of debt5.0%5.0%
After-tax WACC8.5%10.0%
Selected WACC9.2%

NCN1T.TL'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 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.