NRC WACC - Weighted Average Cost of Capital
The WACC of National Research Corp (NRC) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.7% - 7.7% | 6.7% |
| Tax rate | 22.8% - 23.5% | 23.15% |
| Cost of debt | 4.6% - 5.0% | 4.8% |
| WACC | 5.4% - 7.1% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.4 | 0.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 7.7% |
| Tax rate | 22.8% | 23.5% |
| Debt/Equity ratio | 0.17 | 0.17 |
| Cost of debt | 4.6% | 5.0% |
| After-tax WACC | 5.4% | 7.1% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NRC | National Research Corp | 0.17 | 0.8 | 0.71 |
| AKU.TO | Akumin Inc | 1.94 | 0.95 | 0.38 |
| CI | Cigna Corp | 0.37 | 0.18 | 0.14 |
| CSTL | Castle Biosciences Inc | 0.02 | 0.36 | 0.35 |
| CTEK | CynergisTek Inc | 0.01 | 1.24 | 1.23 |
| DIGP | Digipath Inc | 1.96 | -2.09 | -0.83 |
| KDA.V | KDA Group Inc | 0.02 | -0.01 | -0.01 |
| MJNA | Medical Marijuana Inc | 9.08 | 0.41 | 0.05 |
| OTRK | Ontrak Inc | 1.42 | 0.2 | 0.1 |
| WELL.TO | WELL Health Technologies Corp | 0.47 | 1.89 | 1.39 |
| Low | High | |
| Unlevered beta | 0.12 | 0.36 |
| Relevered beta | 0.1 | 0.25 |
| Adjusted relevered beta | 0.4 | 0.5 |
NRC'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 NRC:
cost_of_equity (6.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.4) + 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.