As of today (2026-07-05), Northern Technologies International's weighted average cost of capital is 4.01%%. Northern Technologies International's ROIC % is -0.86% (calculated using TTM income statement data).
Northern Technologies International earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Northern Technologies International (NAS:NTIC) 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, Northern Technologies International's weighted average cost of capital is 4.01%%. Northern Technologies International's ROIC % is -0.86% (calculated using TTM income statement data).
Northern Technologies International earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
Related Terms
Northern Technologies International WACC % Historical Data
* 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 Specialty Chemicals subindustry, Northern Technologies International'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.
Northern Technologies International WACC % vs Chemicals Industry
Northern Technologies International WACC % Calculation
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, Northern Technologies International's market capitalization (E) is $81.916 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 Feb. 2026, Northern Technologies International's latest one-year quarterly average Book Value of Debt (D) is $12.0206 Mil.
a) weight of equity = E / (E + D) = 81.916 / (81.916 + 12.0206) = 0.872
b) weight of debt = D / (E + D) = 12.0206 / (81.916 + 12.0206) = 0.128
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 4.471%. 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. Northern Technologies International's beta is 0.0020.
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 = 4.471% + 0.0020 * 6% = 4.483%
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 Feb. 2026, Northern Technologies International's interest expense (positive number) was $0.737 Mil. Its total Book Value of Debt (D) is $12.0206 Mil.
Cost of Debt = 0.737 / 12.0206 = 6.1311%.
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 = 1.891 / 2.165 = 87.34%.
* 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.
Northern Technologies International (NTIC) has a WACC % of 4.01% as of Jul. 05, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Northern Technologies International and its competitors. This is 48% below median its historical median of 7.78. Over the past decade, Northern Technologies International's WACC % has ranged from 1.60 to 11.44. According to the industry distribution chart, Northern Technologies International ranks #242 out of 1626 companies in the Chemicals industry, placing it in the top 14.9%.
Is Northern Technologies International's WACC % too high?
Northern Technologies International's current WACC % of 4.01% is 48% below median its 10-year median of 7.78. Over the past 10 years, this metric has ranged from a low of 1.60 to a high of 11.44. The Chemicals industry median WACC % is 9.19. Northern Technologies International's value of 4.01% is 56.4% below this industry median. Based on the distribution chart, Northern Technologies International ranks #242 out of 1626 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Northern Technologies International has a GF Score™ of 56/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Northern Technologies International's WACC % compare to FSI and FEAM?
According to the Chemicals industry distribution chart, Northern Technologies International ranks #242 out of 1626 companies for WACC %. This places Northern Technologies International in the top 15% of its industry — outperforming the majority of peers. The industry median WACC % is 9.19. Northern Technologies International's value of 4.01% is 56.4% below this benchmark. Historically, Northern Technologies International's own WACC % has ranged from 1.60 to 11.44 over the past decade. While the company's 10-year median is 7.78 vs. the industry median of 9.19, Northern Technologies International 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 Chemicals company?
The median WACC % among Chemicals companies is 9.19, based on 1,626 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. Northern Technologies International's current WACC % of 4.01% is 56.4% 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 Northern Technologies International and its competitors. For the Chemicals industry, the median WACC % is 9.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northern Technologies International's current WACC % is 4.01%, which is 48% below median its own 10-year median of 7.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northern Technologies International stock overvalued right now?
Based on GuruFocus' analysis, Northern Technologies International (NTIC) is currently considered Possible Value Trap. The stock's GF Value™ is $13.76, compared to a current price of $8.63 — trading 37.3% below its estimated fair value. The current WACC % is 4.01%, which is 48% below median its 10-year median of 7.78 and 56.4% below the Chemicals industry median of 9.19. Northern Technologies International's overall GF Score™ is 56/100 with 4 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 Northern Technologies International (NTIC), the current WACC % is 4.01% as of Jul. 05, 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 Northern Technologies International (NTIC) Overvalued in 2026?
Based on GuruFocus' analysis, Northern Technologies International stock appears to be undervalued.
The current stock price of $8.63 is trading 37.3% below its estimated GF Value™ of $13.76.
GuruFocus considers Northern Technologies International to be Possible Value Trap.
Key valuation signals for NTIC:
WACC %: 4.01% (48% below median its 10-year median of 7.78)
GF Value™: $13.76 vs. price of $8.63 (37.3% below fair value)
Industry Position: 56.4% below the Chemicals median (#242 of 1626)
No single metric tells the full story. See the NTIC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Northern Technologies International Business Description
Northern Technologies International Corp is a United States-based firm that develops and markets proprietary, environmentally beneficial products and services world wide either directly or through a network of joint ventures, distributors, and agents. It operates through two segments, which include ZERUST products and services and Nature-Tec products. Its main business is providing corrosion prevention solutions that are marketed under the ZERUST brand. The company also sells a portfolio of bio-based and biodegradable (compostable) polymer resin compounds and finished products marketed under the Nature-Tec brand. The ZERUST brand generates a vast majority of the revenue for the company. The company generates the majority of its revenue in the United States.
56GF Score
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