NTHOL.IS WACC - Weighted Average Cost of Capital

The WACC of Net Holding AS (NTHOL.IS) is 20.1%.

The Cost of Equity of Net Holding AS (NTHOL.IS) is 28.60%.

The Cost of Debt of Net Holding AS (NTHOL.IS) is 10.50%.

	Range	Selected
Cost of equity	26.90% - 30.30%	28.60%
Tax rate	26.40% - 35.90%	31.15%
Cost of debt	7.00% - 14.00%	10.50%
WACC	18.2% - 21.9%	20.1%

WACC

NTHOL.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.54	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.90%	30.30%

Tax rate	26.40%	35.90%
Debt/Equity ratio	0.66	0.66
Cost of debt	7.00%	14.00%

After-tax WACC	18.2%	21.9%


Selected WACC	20.1%

NTHOL.IS'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 NTHOL.IS:

cost_of_equity (28.60%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.54) + 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.