NTP
Nam Tai Property Inc
Price:  
4.22 
USD
Volume:  
25,624
China | Real Estate Management & Development

NTP WACC - Weighted Average Cost of Capital

The WACC of Nam Tai Property Inc (NTP) is 72.1%.

The Cost of Equity of Nam Tai Property Inc (NTP) is 8.8%.
The Cost of Debt of Nam Tai Property Inc (NTP) is 188.65%.

RangeSelected
Cost of equity7.6% - 10.0%8.8%
Tax rate10.7% - 16.6%13.65%
Cost of debt4.9% - 372.4%188.65%
WACC6.2% - 138.0%72.1%
WACC

NTP WACC calculation

CategoryLowHigh
Long-term bond rate4.2%4.7%
Equity market risk premium5.0%6.0%
Adjusted beta0.680.8
Additional risk adjustments0.0%0.5%
Cost of equity7.6%10.0%
Tax rate10.7%16.6%
Debt/Equity ratio
0.740.74
Cost of debt4.9%372.4%
After-tax WACC6.2%138.0%
Selected WACC72.1%

NTP'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 NTP:

cost_of_equity (8.80%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.68) + 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.