NTBR.L WACC - Weighted Average Cost of Capital

The WACC of Northern Bear PLC (NTBR.L) is 9.4%.

The Cost of Equity of Northern Bear PLC (NTBR.L) is 10.45%.

The Cost of Debt of Northern Bear PLC (NTBR.L) is 5.65%.

	Range	Selected
Cost of equity	8.70% - 12.20%	10.45%
Tax rate	21.50% - 24.20%	22.85%
Cost of debt	4.60% - 6.70%	5.65%
WACC	7.8% - 11.0%	9.4%

WACC

NTBR.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.79	1.04

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	12.20%

Tax rate	21.50%	24.20%
Debt/Equity ratio	0.21	0.21
Cost of debt	4.60%	6.70%

After-tax WACC	7.8%	11.0%


Selected WACC	9.4%

NTBR.L'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 NTBR.L:

cost_of_equity (10.45%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.79) + 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.