NEWAY.AS WACC - Weighted Average Cost of Capital

The WACC of Neways Electronics International NV (NEWAY.AS) is 7.2%.

The Cost of Equity of Neways Electronics International NV (NEWAY.AS) is 9.00%.

The Cost of Debt of Neways Electronics International NV (NEWAY.AS) is 4.40%.

	Range	Selected
Cost of equity	7.90% - 10.10%	9.00%
Tax rate	21.00% - 22.80%	21.90%
Cost of debt	4.20% - 4.60%	4.40%
WACC	6.4% - 8.1%	7.2%

WACC

NEWAY.AS WACC calculation

Category	Low	High

Long-term bond rate	2.3%	2.8%
Equity market risk premium	6.6%	7.6%
Adjusted beta	0.84	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	10.10%

Tax rate	21.00%	22.80%
Debt/Equity ratio	0.46	0.46
Cost of debt	4.20%	4.60%

After-tax WACC	6.4%	8.1%


Selected WACC	7.2%

NEWAY.AS'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 NEWAY.AS:

cost_of_equity (9.00%) = risk_free_rate (2.55%) + equity_risk_premium (7.10%) * adjusted_beta (0.84) + 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.