Question 1

What is Natural Gas Services Group, Inc.'s WACC?

Accepted Answer

Natural Gas Services Group, Inc. (NGS) has a Weighted Average Cost of Capital (WACC) of 7.64%. This is calculated using a Cost of Equity of 7.64% (via CAPM with a beta of 0.63) and a pre-tax Cost of Debt of 5.00%, with an equity weight of 100.00% in the capital structure.

Question 2

Is Natural Gas Services Group, Inc.'s WACC high or low?

Accepted Answer

Natural Gas Services Group, Inc.'s WACC of 7.64% 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 Natural Gas Services Group, Inc.'s WACC calculated?

Accepted Answer

Natural Gas Services Group, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.64% is derived from the CAPM model using a beta of 0.63. The pre-tax Cost of Debt (Rd) is 5.00%. The capital structure is 100.00% equity and 0.00% debt.

Natural Gas Services Group, Inc. (NGS) — WACC 分析

WACC 构成

解读

Natural Gas Services Group, Inc.（NGS）WACC：7.64%

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Natural Gas Services Group, Inc.（NGS） WACC 解读

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