NOS.LS WACC - Weighted Average Cost of Capital

The WACC of NOS SGPS SA (NOS.LS) is 7.0%.

The Cost of Equity of NOS SGPS SA (NOS.LS) is 8.35%.

The Cost of Debt of NOS SGPS SA (NOS.LS) is 5.00%.

	Range	Selected
Cost of equity	7.00% - 9.70%	8.35%
Tax rate	8.70% - 10.70%	9.70%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.2% - 7.9%	7.0%

WACC

NOS.LS WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.61	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.00%	9.70%

Tax rate	8.70%	10.70%
Debt/Equity ratio	0.54	0.54
Cost of debt	5.00%	5.00%

After-tax WACC	6.2%	7.9%


Selected WACC	7.0%

NOS.LS'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 NOS.LS:

cost_of_equity (8.35%) = risk_free_rate (3.15%) + equity_risk_premium (7.35%) * adjusted_beta (0.61) + 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.