The WACC of Nyrstar NV (NYR.BR) is 222.5%.
| Range | Selected | |
| Cost of equity | 8.80% - 11.30% | 10.05% |
| Tax rate | -% - 0.10% | 0.05% |
| Cost of debt | 7.00% - 1,664.50% | 835.75% |
| WACC | 8.3% - 436.6% | 222.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 1.15 | 1.2 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.80% | 11.30% |
| Tax rate | -% | 0.10% |
| Debt/Equity ratio | 0.35 | 0.35 |
| Cost of debt | 7.00% | 1,664.50% |
| After-tax WACC | 8.3% | 436.6% |
| Selected WACC | 222.5% | |
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 NYR.BR:
cost_of_equity (10.05%) = risk_free_rate (2.95%) + equity_risk_premium (5.80%) * adjusted_beta (1.15) + 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.