NEU.WA WACC - Weighted Average Cost of Capital

The WACC of Neuca SA (NEU.WA) is 9.7%.

The Cost of Equity of Neuca SA (NEU.WA) is 10.05%.

The Cost of Debt of Neuca SA (NEU.WA) is 10.90%.

	Range	Selected
Cost of equity	8.80% - 11.30%	10.05%
Tax rate	24.20% - 24.50%	24.35%
Cost of debt	7.00% - 14.80%	10.90%
WACC	8.2% - 11.2%	9.7%

WACC

NEU.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.52	0.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	11.30%

Tax rate	24.20%	24.50%
Debt/Equity ratio	0.22	0.22
Cost of debt	7.00%	14.80%

After-tax WACC	8.2%	11.2%


Selected WACC	9.7%

NEU.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 NEU.WA:

cost_of_equity (10.05%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.52) + 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.