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NN Inc (NNBR) — WACC Analysis

WACC Breakdown

NN Inc (NNBR) has a weighted average cost of capital (WACC) of 11.4%. The cost of equity is 10.3%, derived from a beta of 1.30 and a risk-free rate of 5.2%. The after-tax cost of debt is 13.8%. The capital structure is 69.0% equity and 31.0% debt.

Interpretation

A WACC of 11.4% is moderate, reflecting the market's balanced risk assessment of NN Inc.

Investors can compare NNBR's WACC of 11.4% against industry peers to gauge its relative financing costs. A beta of 1.30 reflects the stock's volatility relative to the broader market.

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VALUATION

NNBR WACC: 11.39% for NN Inc

Current inputs imply a 10.30% cost of equity and a 13.82% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
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

NN Inc Common Stock (NNBR) WACC Results
Weighted Average Cost of Capital
11.39%
Cost of Equity
10.30%
Risk-Free Rate5.22%
Beta1.30
Market Risk Premium4.23%
Cost of Debt
13.82%
Pre-Tax Cost of Debt13.82%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 68.98%($370.29M)
Debt: 31.02%($166.48M)
Equity Component
7.10%
68.98% × 10.30%
Debt Component
4.29%
31.02% × 13.82%

NN Inc (NNBR) WACC in context

NN Inc (NNBR) currently screens with an estimated WACC of 11.39%. That blends a 10.30% cost of equity, a 13.82% pre-tax cost of debt, and a 68.98% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What NNBR WACC implies

A 11.39% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates NNBR

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.30 and equity accounts for 68.98% 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.