NTGY.MC
Naturgy Energy Group SA
Price:  
27.24 
EUR
Volume:  
268,383.00
Spain | Gas Utilities
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NTGY.MC WACC - Weighted Average Cost of Capital

The WACC of Naturgy Energy Group SA (NTGY.MC) is 6.8%.

The Cost of Equity of Naturgy Energy Group SA (NTGY.MC) is 9.30%.
The Cost of Debt of Naturgy Energy Group SA (NTGY.MC) is 4.25%.

Range Selected
Cost of equity 7.90% - 10.70% 9.30%
Tax rate 25.70% - 26.60% 26.15%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.9% - 7.7% 6.8%
WACC

NTGY.MC WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.64 0.79
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.90% 10.70%
Tax rate 25.70% 26.60%
Debt/Equity ratio 0.69 0.69
Cost of debt 4.00% 4.50%
After-tax WACC 5.9% 7.7%
Selected WACC 6.8%

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 (9.30%) = 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.