NSE.AS WACC - Weighted Average Cost of Capital
The WACC of New Sources Energy NV (NSE.AS) is 5.7%.
| Range | Selected | |
| Cost of equity | 4.9% - 6.6% | 5.75% |
| Tax rate | 25.0% - 25.3% | 25.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.9% - 6.5% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.46 | 0.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.9% | 6.6% |
| Tax rate | 25.0% | 25.3% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.9% | 6.5% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NSE.AS | New Sources Energy NV | 0.04 | 0.08 | 0.08 |
| AKSUE.IS | Aksu Enerji ve Ticaret AS | 0.11 | 1.12 | 1.03 |
| ALTEO.BD | Alteo Energiaszolgaltato Nyrt | 0.23 | 0.58 | 0.49 |
| ARISE.ST | Arise AB | 0.85 | 0.37 | 0.23 |
| ECV.DE | Encavis AG | 0.71 | 0.02 | 0.01 |
| ESUN.SW | Edisun Power Europe AG | 4.86 | 0.72 | 0.16 |
| FDE.MI | Frendy Energy SpA | 0.03 | 0.22 | 0.21 |
| MLHYE.PA | Hydro Exploitations SA | 0.54 | 0.4 | 0.28 |
| PANNERGY.BD | PannErgy Nyrt | 0.49 | 0.34 | 0.25 |
| NKW.V | Oceanic Wind Energy Inc | 0 | -0.75 | -0.74 |
| Low | High | |
| Unlevered beta | 0.19 | 0.23 |
| Relevered beta | 0.19 | 0.24 |
| Adjusted relevered beta | 0.46 | 0.49 |
NSE.AS'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 NSE.AS:
cost_of_equity (5.75%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.46) + 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.