NE
Noble Corp (Cayman Island)
Price:  
25.01 
USD
Volume:  
2,376,082.00
United States | N/A
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NE WACC - Weighted Average Cost of Capital

The WACC of Noble Corp (Cayman Island) (NE) is 8.7%.

The Cost of Equity of Noble Corp (Cayman Island) (NE) is 10.80%.
The Cost of Debt of Noble Corp (Cayman Island) (NE) is 5.00%.

Range Selected
Cost of equity 9.60% - 12.00% 10.80%
Tax rate 5.60% - 7.10% 6.35%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.9% - 9.5% 8.7%
WACC

NE WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.25 1.28
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.60% 12.00%
Tax rate 5.60% 7.10%
Debt/Equity ratio 0.53 0.53
Cost of debt 5.00% 5.00%
After-tax WACC 7.9% 9.5%
Selected WACC 8.7%

NE'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 NE:

cost_of_equity (10.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.25) + 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.