Pimco Energy and Tactical Credit Opportunities Fund (NRGX) WACC Analysis

As of May 28, 2025, Pimco Energy and Tactical Credit Opportunities Fund (NRGX) carries a Weighted Average Cost of Capital (WACC) of 8.6%. WACC reflects the blended rate Pimco Energy and Tactical Credit Opportunities Fund must pay to both equity and debt holders.

Within that, the cost of equity is 8.3%, the cost of debt is 5.5%, and the effective tax rate is 26.2%.

Breakdown of WACC Components

• Long-term bond rate: 4.2% – 4.7%
• Equity market risk premium: 5.0% – 6.0%
• Adjusted beta: 0.83 – 1.03
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.27

What It Means for Investors

With a selected WACC of 8.6%, Pimco Energy and Tactical Credit Opportunities Fund must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.