Question 1

What is Nabors Industries Ltd.'s WACC?

Accepted Answer

Nabors Industries Ltd. (NBR) has a Weighted Average Cost of Capital (WACC) of 7.35%. This is calculated using a Cost of Equity of 8.49% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 8.63%, with an equity weight of 31.82% in the capital structure.

Question 2

Is Nabors Industries Ltd.'s WACC high or low?

Accepted Answer

Nabors Industries Ltd.'s WACC of 7.35% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Nabors Industries Ltd.'s WACC calculated?

Accepted Answer

Nabors Industries Ltd.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.49% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 8.63%. The capital structure is 31.82% equity and 68.18% debt.

Nabors Industries Ltd. (NBR) — WACC 分析

WACC 构成

解读

Nabors Industries Ltd.（NBR）WACC：7.35%

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Nabors Industries Ltd.（NBR） WACC 解读

NBR 公司分析

NBR DCF 估值

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