NOEJ.DE
Norma Group SE
Price:  
12.44 
EUR
Volume:  
43,808.00
Germany | Machinery
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NOEJ.DE WACC - Weighted Average Cost of Capital

The WACC of Norma Group SE (NOEJ.DE) is 7.0%.

The Cost of Equity of Norma Group SE (NOEJ.DE) is 10.90%.
The Cost of Debt of Norma Group SE (NOEJ.DE) is 6.00%.

Range Selected
Cost of equity 9.60% - 12.20% 10.90%
Tax rate 35.10% - 42.30% 38.70%
Cost of debt 4.00% - 8.00% 6.00%
WACC 5.9% - 8.2% 7.0%
WACC

NOEJ.DE WACC calculation

Category Low High
Long-term bond rate 2.8% 3.3%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.34 1.38
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.60% 12.20%
Tax rate 35.10% 42.30%
Debt/Equity ratio 1.12 1.12
Cost of debt 4.00% 8.00%
After-tax WACC 5.9% 8.2%
Selected WACC 7.0%

NOEJ.DE'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 NOEJ.DE:

cost_of_equity (10.90%) = risk_free_rate (3.05%) + equity_risk_premium (5.60%) * adjusted_beta (1.34) + 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.