NWSA
News Corp
Price:  
27.73 
USD
Volume:  
2,310,703.00
United States | Media
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NWSA WACC - Weighted Average Cost of Capital

The WACC of News Corp (NWSA) is 7.8%.

The Cost of Equity of News Corp (NWSA) is 8.55%.
The Cost of Debt of News Corp (NWSA) is 4.75%.

Range Selected
Cost of equity 6.80% - 10.30% 8.55%
Tax rate 10.70% - 22.20% 16.45%
Cost of debt 4.40% - 5.10% 4.75%
WACC 6.3% - 9.3% 7.8%
WACC

NWSA WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.64 0.97
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 10.30%
Tax rate 10.70% 22.20%
Debt/Equity ratio 0.19 0.19
Cost of debt 4.40% 5.10%
After-tax WACC 6.3% 9.3%
Selected WACC 7.8%

NWSA'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 NWSA:

cost_of_equity (8.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.64) + 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.