NGS.ST WACC - Weighted Average Cost of Capital

The WACC of NGS Group AB (NGS.ST) is 6.1%.

The Cost of Equity of NGS Group AB (NGS.ST) is 6.10%.

The Cost of Debt of NGS Group AB (NGS.ST) is 7.45%.

	Range	Selected
Cost of equity	5.30% - 6.90%	6.10%
Tax rate	15.00% - 20.60%	17.80%
Cost of debt	7.00% - 7.90%	7.45%
WACC	5.4% - 6.8%	6.1%

WACC

NGS.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.45	0.47

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.30%	6.90%

Tax rate	15.00%	20.60%
Debt/Equity ratio	0.2	0.2
Cost of debt	7.00%	7.90%

After-tax WACC	5.4%	6.8%


Selected WACC	6.1%

NGS.ST'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 NGS.ST:

cost_of_equity (6.10%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.45) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.