What is NEWA's WACC?

Newater Technology Inc (NEWA) WACC Analysis

As of May 29, 2025, Newater Technology Inc (NEWA) carries a Weighted Average Cost of Capital (WACC) of 7.0%. WACC reflects the blended rate Newater Technology Inc must pay to both equity and debt holders.

Within that, the cost of equity is 6.8%, the cost of debt is 4.3%, and the effective tax rate is 17.3%.

Breakdown of WACC Components

  • Long-term bond rate: 3.2% – 3.7%
  • Equity market risk premium: 4.2% – 5.2%
  • Adjusted beta: 0.85 – 1.07
  • Additional risk adjustment: 0.0% – 0.5%
  • Debt-to-equity ratio: 0.61

What It Means for Investors

With a selected WACC of 7.0%, Newater Technology Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.