NETW.L WACC - Weighted Average Cost of Capital
The WACC of Network International Holdings PLC (NETW.L) is 8.4%.
| Range | Selected | |
| Cost of equity | 7.5% - 10.7% | 9.1% |
| Tax rate | 13.0% - 15.0% | 14% |
| Cost of debt | 4.0% - 5.2% | 4.6% |
| WACC | 7.0% - 9.9% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.59 | 0.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 10.7% |
| Tax rate | 13.0% | 15.0% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 4.0% | 5.2% |
| After-tax WACC | 7.0% | 9.9% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NETW.L | Network International Holdings PLC | 0.15 | 0.09 | 0.08 |
| BOKU.L | Boku Inc | 0 | 0.76 | 0.76 |
| EQLS.L | Equals Group PLC | 0.01 | -0.15 | -0.15 |
| FIN.L | Finablr PLC | 0.1 | 0.94 | 0.87 |
| HIPAY.PA | Hipay Group SA | 0.21 | 1.1 | 0.93 |
| TUNG.L | Tungsten Corp PLC | 0.11 | 1.66 | 1.52 |
| WLN.PA | Worldline SA | 2.98 | 1.12 | 0.31 |
| PAGS | PagSeguro Digital Ltd | 0.27 | 0.71 | 0.58 |
| PAYA | Paya Holdings Inc | 0.19 | 0.36 | 0.31 |
| RPAY | Repay Holdings Corp | 1.1 | 0.69 | 0.35 |
| Low | High | |
| Unlevered beta | 0.34 | 0.65 |
| Relevered beta | 0.39 | 0.73 |
| Adjusted relevered beta | 0.59 | 0.82 |
NETW.L'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 NETW.L:
cost_of_equity (9.10%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.59) + 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.