NOM.OL WACC - Weighted Average Cost of Capital
The WACC of Nordic Mining ASA (NOM.OL) is 5.0%.
| Range | Selected | |
| Cost of equity | 3.8% - 7.2% | 5.5% |
| Tax rate | 22.0% - 22.0% | 22% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.8% - 6.2% | 5.0% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.09 | 0.47 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 3.8% | 7.2% |
| Tax rate | 22.0% | 22.0% |
| Debt/Equity ratio | 0.4 | 0.4 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.8% | 6.2% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NOM.OL | Nordic Mining ASA | 0.46 | 1.21 | 0.89 |
| ARCT.ST | Arctic Minerals AB | 1.08 | -1.53 | -0.83 |
| BOTX.ST | Botnia Exploration Holding AB (publ) | 0.03 | 0.21 | 0.21 |
| CRCL.L | Corcel PLC | 0.07 | 1.66 | 1.57 |
| EMH.L | European Metals Holdings Ltd | 0 | -0.29 | -0.29 |
| KRS.L | Keras Resources PLC | 0.16 | -0.61 | -0.55 |
| MNRG.L | Metalnrg PLC | 0.18 | 1.62 | 1.42 |
| THR.L | Thor Mining PLC | 0.01 | -0.27 | -0.27 |
| WRES.L | W Resources PLC | 17.51 | 1.72 | 0.12 |
| ZNWD.L | Zinnwald Lithium PLC | 0.01 | -1.88 | -1.86 |
| Low | High | |
| Unlevered beta | -0.28 | 0.15 |
| Relevered beta | -0.36 | 0.21 |
| Adjusted relevered beta | 0.09 | 0.47 |
NOM.OL'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 NOM.OL:
cost_of_equity (5.50%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.09) + 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.