As of today (2026-06-30), Nordic Paper Holding AB's weighted average cost of capital is 6.68%%. Nordic Paper Holding AB's ROIC % is 13.41% (calculated using TTM income statement data).
Nordic Paper Holding AB generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
Nordic Paper Holding AB (FRA:NPH) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Nordic Paper Holding AB's weighted average cost of capital is 6.68%%. Nordic Paper Holding AB's ROIC % is 13.41% (calculated using TTM income statement data).
Nordic Paper Holding AB generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Paper & Paper Products subindustry, Nordic Paper Holding AB's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Nordic Paper Holding AB WACC % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Nordic Paper Holding AB's WACC % distribution charts can be found below:
* The bar in red indicates where Nordic Paper Holding AB's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Nordic Paper Holding AB's market capitalization (E) is €283.024 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Jun. 2025, Nordic Paper Holding AB's latest one-year quarterly average Book Value of Debt (D) is €155.9552 Mil.
a) weight of equity = E / (E + D) = 283.024 / (283.024 + 155.9552) = 0.6447
b) weight of debt = D / (E + D) = 155.9552 / (283.024 + 155.9552) = 0.3553
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 2.7446%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Nordic Paper Holding AB's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 2.7446% + 1 * 6% = 8.7446%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Jun. 2025, Nordic Paper Holding AB's interest expense (positive number) was €5.818 Mil. Its total Book Value of Debt (D) is €155.9552 Mil.
Cost of Debt = 5.818 / 155.9552 = 3.7306%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 9.328 / 43.023 = 21.68%.
Nordic Paper Holding AB's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.6447
*
8.7446%
+
0.3553
*
3.7306%
*
(1 - 21.68%)
=
6.68%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Nordic Paper Holding AB (FRA:NPH) has a WACC % of 6.68% as of Jun. 30, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Nordic Paper Holding AB and its competitors. This is 22% above median its historical median of 5.46. Over the past decade, Nordic Paper Holding AB's WACC % has ranged from 1.55 to 7.10.
Is Nordic Paper Holding AB's WACC % too high?
Nordic Paper Holding AB's current WACC % of 6.68% is 22% above median its 10-year median of 5.46. Over the past 10 years, this metric has ranged from a low of 1.55 to a high of 7.10. The Forest Products industry median WACC % is 7.40. Nordic Paper Holding AB's value of 6.68% is 9.7% below this industry median. Overall, Nordic Paper Holding AB has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Nordic Paper Holding AB's WACC % compare to SLVM?
Nordic Paper Holding AB's WACC % of 6.68% can be compared against companies in the Forest Products industry. The industry median WACC % is 7.40. Nordic Paper Holding AB's value of 6.68% is 9.7% below this benchmark. Historically, Nordic Paper Holding AB's own WACC % has ranged from 1.55 to 7.10 over the past decade. While the company's 10-year median is 5.46 vs. the industry median of 7.40, Nordic Paper Holding AB has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Forest Products company?
The median WACC % among Forest Products companies is 7.40, based on 292 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nordic Paper Holding AB's current WACC % of 6.68% is 9.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Nordic Paper Holding AB and its competitors. For the Forest Products industry, the median WACC % is 7.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nordic Paper Holding AB's current WACC % is 6.68%, which is 22% above median its own 10-year median of 5.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nordic Paper Holding AB stock overvalued right now?
Nordic Paper Holding AB (FRA:NPH) has a current WACC % of 6.68%. The stock's GF Value™ is €4.14, compared to a current price of €4.23 — trading 2.2% above its estimated fair value. The current WACC % is 6.68%, which is 22% above median its 10-year median of 5.46 and 9.7% below the Forest Products industry median of 7.40. Nordic Paper Holding AB's overall GF Score™ is 17/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Nordic Paper Holding AB (FRA:NPH), the current WACC % is 6.68% as of Jun. 30, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Nordic Paper Holding AB (FRA:NPH) Overvalued in 2026?
Based on GuruFocus' analysis, Nordic Paper Holding AB stock appears to be overvalued.
The current stock price of €4.23 is trading 2.2% above its estimated GF Value™ of €4.14.
Key valuation signals for FRA:NPH:
WACC %: 6.68% (22% above median its 10-year median of 5.46)
GF Value™: €4.14 vs. price of €4.23 (2.2% above fair value)
Industry Position: 9.7% below the Forest Products median
No single metric tells the full story. See the FRA:NPH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nordic Paper Holding AB is a paper company operating in two segments; Kraft paper is used in many end-use applications, such as in products aimed at consumers, including carrier bags and food packaging, in packaging for building materials, and in multiple other industrial applications, and Greaseproof paper is a group of paper types that are characterized by a resistance to oil or grease and is mainly used in the food sector but also have a number of industrial applications. The company offers effective and environmentally responsible products and solutions within the Kraft Paper and Natural Greaseproof segments. Geographically, it operates in Sweden, Italy, Germany, UK, Rest of Europe, USA, and Rest of the world.
17GF Score
Get the complete analysis for FRA:NPH
WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:NPH has been successfully added to your 
