NETI
Eneti Inc
Price:  
11.33 
USD
Volume:  
206,401.00
Monaco | Marine
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NETI WACC - Weighted Average Cost of Capital

The WACC of Eneti Inc (NETI) is 7.4%.

The Cost of Equity of Eneti Inc (NETI) is 7.80%.
The Cost of Debt of Eneti Inc (NETI) is 5.75%.

Range Selected
Cost of equity 6.70% - 8.90% 7.80%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 4.00% - 7.50% 5.75%
WACC 6.3% - 8.5% 7.4%
WACC

NETI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.63 0.73
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 8.90%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.15 0.15
Cost of debt 4.00% 7.50%
After-tax WACC 6.3% 8.5%
Selected WACC 7.4%

NETI'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 NETI:

cost_of_equity (7.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.63) + 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.