NOMD
Nomad Foods Ltd
Price:  
17.38 
USD
Volume:  
428,833.00
United Kingdom | Food Products
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NOMD WACC - Weighted Average Cost of Capital

The WACC of Nomad Foods Ltd (NOMD) is 6.1%.

The Cost of Equity of Nomad Foods Ltd (NOMD) is 8.50%.
The Cost of Debt of Nomad Foods Ltd (NOMD) is 4.65%.

Range Selected
Cost of equity 7.00% - 10.00% 8.50%
Tax rate 23.00% - 23.60% 23.30%
Cost of debt 4.00% - 5.30% 4.65%
WACC 5.1% - 7.1% 6.1%
WACC

NOMD WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.68 0.92
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 10.00%
Tax rate 23.00% 23.60%
Debt/Equity ratio 0.97 0.97
Cost of debt 4.00% 5.30%
After-tax WACC 5.1% 7.1%
Selected WACC 6.1%

NOMD'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 NOMD:

cost_of_equity (8.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.68) + 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.