NNIT.CO WACC - Weighted Average Cost of Capital
The WACC of NNIT A/S (NNIT.CO) is 7.8%.
| Range | Selected | |
| Cost of equity | 7.0% - 10.4% | 8.7% |
| Tax rate | 23.6% - 25.5% | 24.55% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.4% - 9.2% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.84 | 1.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 10.4% |
| Tax rate | 23.6% | 25.5% |
| Debt/Equity ratio | 0.2 | 0.2 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.4% | 9.2% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NNIT.CO | NNIT A/S | 0.2 | 0.38 | 0.33 |
| AINO.ST | Aino Health AB (publ) | 0 | 1.48 | 1.47 |
| AJ91.DE | DocCheck AG | 0.1 | 0.9 | 0.84 |
| CARA.OL | Carasent ASA | 0.03 | 1.23 | 1.2 |
| CGM.PA | Cegedim SA | 1.96 | 0.64 | 0.26 |
| CUR.ST | Curando Nordic AB | 0.03 | -0.85 | -0.83 |
| MNTC.ST | Mentice AB | 0.02 | 0.71 | 0.69 |
| SNT.WA | Synektik SA | 0.01 | 0.63 | 0.62 |
| OPRX | OPTIMIZERx Corp | 0.18 | 1.51 | 1.34 |
| STRM | Streamline Health Solutions Inc | 0.95 | 2.06 | 1.21 |
| Low | High | |
| Unlevered beta | 0.66 | 0.98 |
| Relevered beta | 0.76 | 1.13 |
| Adjusted relevered beta | 0.84 | 1.09 |
NNIT.CO'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 NNIT.CO:
cost_of_equity (8.70%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * 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.