NTHOL.IS WACC - Weighted Average Cost of Capital
The WACC of Net Holding AS (NTHOL.IS) is 20.1%.
| Range | Selected | |
| Cost of equity | 26.9% - 30.3% | 28.6% |
| Tax rate | 26.4% - 35.9% | 31.15% |
| Cost of debt | 7.0% - 14.0% | 10.5% |
| WACC | 18.2% - 21.9% | 20.1% |
| 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 | 26.9% | 30.3% |
| Tax rate | 26.4% | 35.9% |
| Debt/Equity ratio | 0.66 | 0.66 |
| Cost of debt | 7.0% | 14.0% |
| After-tax WACC | 18.2% | 21.9% |
| Selected WACC | 20.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NTHOL.IS | Net Holding AS | 0.66 | 0.88 | 0.6 |
| ALLHB.PA | Les Hotels Baverez SA | 0.09 | -0.27 | -0.26 |
| AYCES.IS | Altin Yunus Cesme Turistik Tesisler AS | 0.01 | 0.72 | 0.71 |
| GPA.LS | Imobiliaria Construtora Grao Para SA | 0.83 | -0.06 | -0.04 |
| HDP.PA | Les Hotels de Paris SA | 11.02 | 0.17 | 0.02 |
| IGV.MI | I Grandi Viaggi SpA | 0.07 | 0.51 | 0.49 |
| INF.WA | Interferie SA | 0.37 | 0.58 | 0.46 |
| LAMPS.AT | Lampsa Hellenic Hotels SA | 0.16 | 0.07 | 0.06 |
| MARTI.IS | Marti Otel Isletmeleri AS | 4.84 | 1.23 | 0.28 |
| VAC.PA | Pierre et Vacances SA | 4.56 | 1.32 | 0.31 |
| Low | High | |
| Unlevered beta | 0.19 | 0.37 |
| Relevered beta | 0.31 | 0.57 |
| Adjusted relevered beta | 0.54 | 0.71 |
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.