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NBT Bancorp Inc (NBTB) — WACC Analysis

WACC Breakdown

NBT Bancorp Inc (NBTB) has a weighted average cost of capital (WACC) of 13.6%. The cost of equity is 9.2%, derived from a beta of 1.00 and a risk-free rate of 5.0%. The after-tax cost of debt is 51.4%. The capital structure is 89.5% equity and 10.5% debt.

Interpretation

A WACC of 13.6% indicates that the market perceives NBT Bancorp Inc as higher-risk, requiring a greater return to compensate investors.

Investors can compare NBTB's WACC of 13.6% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

NBTB WACC: 13.61% for NBT Bancorp Inc

Current inputs imply a 9.19% cost of equity and a 65.10% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

NBT Bancorp Inc Common Stock (NBTB) WACC Results
Weighted Average Cost of Capital
13.61%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
51.43%
Pre-Tax Cost of Debt65.10%
Tax Rate21.00%
Tax Shield13.67%
Capital Structure
Equity: 89.54%($2709.20M)
Debt: 10.46%($316.44M)
Equity Component
8.23%
89.54% × 9.19%
Debt Component
5.38%
10.46% × 51.43%

NBT Bancorp Inc (NBTB) WACC in context

NBT Bancorp Inc (NBTB) currently screens with an estimated WACC of 13.61%. That blends a 9.19% cost of equity, a 65.10% pre-tax cost of debt, and a 89.54% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What NBTB WACC implies

A 13.61% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates NBTB

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 89.54% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.