NTGY.MC WACC - Weighted Average Cost of Capital
The WACC of Naturgy Energy Group SA (NTGY.MC) is 6.9%.
| Range | Selected | |
| Cost of equity | 7.9% - 11.1% | 9.5% |
| Tax rate | 25.7% - 26.6% | 26.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.9% - 8.0% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.64 | 0.83 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 11.1% |
| Tax rate | 25.7% | 26.6% |
| Debt/Equity ratio | 0.68 | 0.68 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.9% | 8.0% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NTGY.MC | Naturgy Energy Group SA | 0.68 | 0.41 | 0.27 |
| RGCO | RGC Resources Inc | 0.64 | 0.73 | 0.5 |
| UGI | UGI Corp | 0.94 | 0.41 | 0.24 |
| ACS.MI | Acsm Agam SpA | 0.64 | 0.49 | 0.33 |
| AMG1L.VS | Amber Grid AB | 0.41 | -0.02 | -0.02 |
| ASC.MI | Ascopiave SpA | 0.6 | 0.1 | 0.07 |
| AYGAZ.IS | Aygaz AS | 0.29 | 0.95 | 0.78 |
| EDP.LS | EDP Energias de Portugal SA | 1.46 | 1.26 | 0.6 |
| RUI.PA | Rubis SCA | 0.75 | 0.86 | 0.55 |
| TSG.WA | Tesgas SA | 0.42 | 0.66 | 0.51 |
| Low | High | |
| Unlevered beta | 0.31 | 0.5 |
| Relevered beta | 0.46 | 0.75 |
| Adjusted relevered beta | 0.64 | 0.83 |
NTGY.MC'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 NTGY.MC:
cost_of_equity (9.50%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.64) + 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.