NRC
National Research Corp
Price:  
14.73 
USD
Volume:  
71,788.00
United States | Health Care Providers & Services
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NRC WACC - Weighted Average Cost of Capital

The WACC of National Research Corp (NRC) is 9.0%.

The Cost of Equity of National Research Corp (NRC) is 10.00%.
The Cost of Debt of National Research Corp (NRC) is 4.80%.

Range Selected
Cost of equity 8.30% - 11.70% 10.00%
Tax rate 22.80% - 23.50% 23.15%
Cost of debt 4.60% - 5.00% 4.80%
WACC 7.5% - 10.5% 9.0%
WACC

NRC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.96 1.23
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.30% 11.70%
Tax rate 22.80% 23.50%
Debt/Equity ratio 0.19 0.19
Cost of debt 4.60% 5.00%
After-tax WACC 7.5% 10.5%
Selected WACC 9.0%

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 (10.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.96) + 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.