NRGX
Pimco Energy and Tactical Credit Opportunities Fund
Price:  
20.26 
USD
Volume:  
136,207
United States | Finance and Insurance

NRGX WACC - Weighted Average Cost of Capital

The WACC of Pimco Energy and Tactical Credit Opportunities Fund (NRGX) is 8.6%.

The Cost of Equity of Pimco Energy and Tactical Credit Opportunities Fund (NRGX) is 9.85%.
The Cost of Debt of Pimco Energy and Tactical Credit Opportunities Fund (NRGX) is 5.5%.

RangeSelected
Cost of equity8.3% - 11.4%9.85%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.5% - 5.5%5.5%
WACC7.4% - 9.8%8.6%
WACC

NRGX WACC calculation

CategoryLowHigh
Long-term bond rate4.2%4.7%
Equity market risk premium5.0%6.0%
Adjusted beta0.831.03
Additional risk adjustments0.0%0.5%
Cost of equity8.3%11.4%
Tax rate26.2%27.0%
Debt/Equity ratio
0.270.27
Cost of debt5.5%5.5%
After-tax WACC7.4%9.8%
Selected WACC8.6%

NRGX WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.490.77
Relevered beta0.751.04
Adjusted relevered beta0.831.03

NRGX'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 NRGX:

cost_of_equity (9.85%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.83) + 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.