NTML.TA WACC - Weighted Average Cost of Capital

The WACC of Neto Malinda Trading Ltd (NTML.TA) is 9.7%.

The Cost of Equity of Neto Malinda Trading Ltd (NTML.TA) is 9.90%.

The Cost of Debt of Neto Malinda Trading Ltd (NTML.TA) is 5.95%.

	Range	Selected
Cost of equity	7.90% - 11.90%	9.90%
Tax rate	21.50% - 21.80%	21.65%
Cost of debt	5.40% - 6.50%	5.95%
WACC	7.7% - 11.6%	9.7%

WACC

NTML.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.5	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	11.90%

Tax rate	21.50%	21.80%
Debt/Equity ratio	0.04	0.04
Cost of debt	5.40%	6.50%

After-tax WACC	7.7%	11.6%


Selected WACC	9.7%

NTML.TA'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 NTML.TA:

cost_of_equity (9.90%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.5) + 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.