NN.AS WACC - Weighted Average Cost of Capital

The WACC of NN Group NV (NN.AS) is 5.8%.

The Cost of Equity of NN Group NV (NN.AS) is 7.10%.

The Cost of Debt of NN Group NV (NN.AS) is 5.00%.

	Range	Selected
Cost of equity	5.90% - 8.30%	7.10%
Tax rate	17.40% - 17.50%	17.45%
Cost of debt	5.00% - 5.00%	5.00%
WACC	5.1% - 6.4%	5.8%

WACC

NN.AS WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.65	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.90%	8.30%

Tax rate	17.40%	17.50%
Debt/Equity ratio	0.81	0.81
Cost of debt	5.00%	5.00%

After-tax WACC	5.1%	6.4%


Selected WACC	5.8%

NN.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 NN.AS:

cost_of_equity (7.10%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.65) + 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.