NEU.WA WACC - Weighted Average Cost of Capital

The WACC of Neuca SA (NEU.WA) is 9.8%.

The Cost of Equity of Neuca SA (NEU.WA) is 10.15%.

The Cost of Debt of Neuca SA (NEU.WA) is 10.40%.

	Range	Selected
Cost of equity	9.10% - 11.20%	10.15%
Tax rate	24.50% - 25.10%	24.80%
Cost of debt	7.20% - 13.60%	10.40%
WACC	8.5% - 11.1%	9.8%

WACC

NEU.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.56	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	11.20%

Tax rate	24.50%	25.10%
Debt/Equity ratio	0.18	0.18
Cost of debt	7.20%	13.60%

After-tax WACC	8.5%	11.1%


Selected WACC	9.8%

NEU.WA'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 NEU.WA:

cost_of_equity (10.15%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.56) + 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.