NTS.WA WACC - Weighted Average Cost of Capital
The WACC of Notoria Serwis SA (NTS.WA) is 9.3%.
| Range | Selected | |
| Cost of equity | 8.3% - 10.3% | 9.3% |
| Tax rate | 0.6% - 1.4% | 1% |
| Cost of debt | 6.1% - 6.1% | 6.1% |
| WACC | 8.3% - 10.3% | 9.3% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.44 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 10.3% |
| Tax rate | 0.6% | 1.4% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 6.1% | 6.1% |
| After-tax WACC | 8.3% | 10.3% |
| Selected WACC | 9.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NTS.WA | Notoria Serwis SA | 0 | -0.34 | -0.34 |
| AQX.L | Aquis Exchange PLC | 0.01 | -0.2 | -0.19 |
| BSD.PA | Bourse Direct Et Bourse Discount SA | 0.04 | 0.34 | 0.33 |
| CFV.MI | Confinvest FL SpA | 0.1 | 0.28 | 0.26 |
| ENX.PA | Euronext NV | 0.2 | 0.19 | 0.15 |
| EXAE.AT | Hellenic Exchanges Athens Stock Exchange SA | 0 | 1.13 | 1.12 |
| GEQ.MI | Gequity SpA | 1.66 | 0.18 | 0.07 |
| GPW.WA | Gielda Papierow Wartosciowych w Warszawie SA | 0.01 | 0.63 | 0.62 |
| MAFL.L | Mineral & Financial Investments Ltd | 0 | 0.35 | 0.35 |
| WSL.L | Worldsec Ltd | 0.03 | 0.17 | 0.17 |
| Low | High | |
| Unlevered beta | 0.16 | 0.28 |
| Relevered beta | 0.16 | 0.28 |
| Adjusted relevered beta | 0.44 | 0.52 |
NTS.WA'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 NTS.WA:
cost_of_equity (9.30%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.44) + 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.