NWSA
News Corp
Price:  
29.72 
USD
Volume:  
3,165,965.00
United States | Media
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NWSA WACC - Weighted Average Cost of Capital

The WACC of News Corp (NWSA) is 8.0%.

The Cost of Equity of News Corp (NWSA) is 8.70%.
The Cost of Debt of News Corp (NWSA) is 4.65%.

Range Selected
Cost of equity 7.40% - 10.00% 8.70%
Tax rate 10.70% - 22.20% 16.45%
Cost of debt 4.40% - 4.90% 4.65%
WACC 6.9% - 9.1% 8.0%
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 0.76 0.92
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 10.00%
Tax rate 10.70% 22.20%
Debt/Equity ratio 0.17 0.17
Cost of debt 4.40% 4.90%
After-tax WACC 6.9% 9.1%
Selected WACC 8.0%

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 (8.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.76) + 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.