NWSA
News Corp
Price:  
29.41 
USD
Volume:  
2,068,690.00
United States | Media
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NWSA WACC - Weighted Average Cost of Capital

The WACC of News Corp (NWSA) is 7.6%.

The Cost of Equity of News Corp (NWSA) is 8.15%.
The Cost of Debt of News Corp (NWSA) is 4.30%.

Range Selected
Cost of equity 6.40% - 9.90% 8.15%
Tax rate 23.30% - 32.00% 27.65%
Cost of debt 4.00% - 4.60% 4.30%
WACC 6.0% - 9.2% 7.6%
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 0.55 0.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 9.90%
Tax rate 23.30% 32.00%
Debt/Equity ratio 0.12 0.12
Cost of debt 4.00% 4.60%
After-tax WACC 6.0% 9.2%
Selected WACC 7.6%

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 (8.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.55) + 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.