NNA WACC - Weighted Average Cost of Capital

The WACC of Navios Maritime Acquisition Corp (NNA) is 10.7%.

The Cost of Equity of Navios Maritime Acquisition Corp (NNA) is 24.05%.

The Cost of Debt of Navios Maritime Acquisition Corp (NNA) is 13.75%.

	Range	Selected
Cost of equity	13.20% - 34.90%	24.05%
Tax rate	27.00% - 27.00%	27.00%
Cost of debt	6.90% - 20.60%	13.75%
WACC	5.4% - 16.0%	10.7%

WACC

NNA WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	4.2%	5.2%
Adjusted beta	2.38	5.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.20%	34.90%

Tax rate	27.00%	27.00%
Debt/Equity ratio	18.68	18.68
Cost of debt	6.90%	20.60%

After-tax WACC	5.4%	16.0%


Selected WACC	10.7%

NNA'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 NNA:

cost_of_equity (24.05%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (2.38) + 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.