NM WACC - Weighted Average Cost of Capital

The WACC of Navios Maritime Holdings Inc (NM) is 12.2%.

The Cost of Equity of Navios Maritime Holdings Inc (NM) is 13.15%.

The Cost of Debt of Navios Maritime Holdings Inc (NM) is 12.95%.

	Range	Selected
Cost of equity	10.50% - 15.80%	13.15%
Tax rate	0.70% - 9.20%	4.95%
Cost of debt	8.90% - 17.00%	12.95%
WACC	9.0% - 15.4%	12.2%

WACC

NM WACC calculation

Category	Low	High

Long-term bond rate	4.2%	4.7%
Equity market risk premium	4.6%	5.6%
Adjusted beta	1.37	1.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	15.80%

Tax rate	0.70%	9.20%
Debt/Equity ratio	13.21	13.21
Cost of debt	8.90%	17.00%

After-tax WACC	9.0%	15.4%


Selected WACC	12.2%

NM'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 NM:

cost_of_equity (13.15%) = risk_free_rate (4.45%) + equity_risk_premium (5.10%) * adjusted_beta (1.37) + 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.