NDT.MI WACC - Weighted Average Cost of Capital
The WACC of Neodecortech SpA (NDT.MI) is 7.0%.
| Range | Selected | |
| Cost of equity | 8.1% - 11.5% | 9.8% |
| Tax rate | 11.5% - 14.4% | 12.95% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.2% - 7.8% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.54 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 11.5% |
| Tax rate | 11.5% | 14.4% |
| Debt/Equity ratio | 1.06 | 1.06 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.2% | 7.8% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NDT.MI | Neodecortech SpA | 1.06 | 0.33 | 0.17 |
| ALKIM.IS | Alkim Alkali Kimya AS | 0.02 | 0.42 | 0.42 |
| CPHN.SW | CPH Chemie und Papier Holding AG | 0.05 | 0.54 | 0.51 |
| CRPR.L | James Cropper PLC | 1.25 | 0.21 | 0.1 |
| GRG1L.VS | Grigeo AB | 0.06 | 0.39 | 0.37 |
| IBG.MC | Iberpapel Gestion SA | 0.34 | 0.17 | 0.13 |
| KMP.WA | Przedsiebiorstwo Produkcyjno Handlowe Kompap SA | 0.1 | 0.16 | 0.14 |
| MCM.MC | Miquel Y Costas & Miquel SA | 0.09 | 0.3 | 0.28 |
| NPAPER.ST | Nordic Paper Holding AB | 0.48 | 0.12 | 0.09 |
| RROS.ST | Rottneros AB | 0.46 | 0.68 | 0.48 |
| Low | High | |
| Unlevered beta | 0.16 | 0.32 |
| Relevered beta | 0.31 | 0.61 |
| Adjusted relevered beta | 0.54 | 0.74 |
NDT.MI'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 NDT.MI:
cost_of_equity (9.80%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.54) + 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.