Nationwide Building Society (NBS.L) WACC Analysis

As of December 15, 2025, Nationwide Building Society (NBS.L) carries a Weighted Average Cost of Capital (WACC) of 4.7%. WACC reflects the blended rate Nationwide Building Society must pay to both equity and debt holders.

Within that, the cost of equity is 33.0%, the cost of debt is 5.0%, and the effective tax rate is 23.6%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 4.85 – 46.9
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 189.7

What It Means for Investors

With a selected WACC of 4.7%, Nationwide Building Society must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.