NASDAQ 100 : Comparison of Cost of Equity (Ke) with Actual Return – Dec 2025
Capital Asset Pricing Model (CAPM) Inputs (US Market – Dec 2025)
Risk-Free Rate : 4.15% (10-Year US Treasury Yield)
(https://www.bloomberg.com/markets/rates-bonds/government-bonds/us)
Market Risk Premium: 4.33% (Aswath Damodaran Estimate)
https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/ctryprem.html
Beta value is taken from Yahoo Finance. Yahoo Finance uses 5-Year Monthly data. This “smoothes out” short-term volatility and provides a long-term view of the company’s risk
Formula: (Ke) = 4.15% + Beta x 4.33%
Part 1: Top 50 Weighted Companies
Cost of Equity vs. Actual 5-Year Return
| Company | Ticker | Beta (β) | Cost of Equity (Ke) | Actual 5Y CAGR |
| Nvidia | NVDA | 1.69 | 11.47% | 67.4% |
| Broadcom | AVGO | 1.15 | 9.13% | 41.2% |
| Apple | AAPL | 1.24 | 9.52% | 17.1% |
| Microsoft | MSFT | 0.90 | 8.05% | 18.3% |
| Google (Class A) | GOOGL | 1.05 | 8.70% | 20.2% |
| Meta Platforms | META | 1.22 | 9.43% | 22.1% |
| Amazon | AMZN | 1.14 | 9.09% | 7.1% |
| Tesla | TSLA | 2.03 | 12.94% | 16.2% |
| Costco | COST | 0.78 | 7.53% | 24.5% |
| Netflix | NFLX | 1.30 | 9.78% | 14.8% |
| AMD | AMD | 1.65 | 11.30% | 31.5% |
| Adobe | ADBE | 1.30 | 9.78% | 9.5% |
| PepsiCo | PEP | 0.56 | 6.57% | 7.8% |
| Linde PLC | LIN | 0.85 | 7.83% | 15.4% |
| Cisco Systems | CSCO | 0.85 | 7.83% | 6.2% |
| T-Mobile US | TMUS | 0.65 | 6.96% | 21.5% |
| Intuit | INTU | 1.15 | 9.13% | 16.8% |
| Qualcomm | QCOM | 1.25 | 9.56% | 14.2% |
| Intel | INTC | 1.10 | 8.91% | -8.5% |
| Amgen | AMGN | 0.60 | 6.75% | 4.5% |
| Honeywell | HON | 1.05 | 8.70% | 5.2% |
| Texas Instruments | TXN | 1.00 | 8.48% | 10.5% |
| Applied Materials | AMAT | 1.45 | 10.43% | 25.6% |
| Booking Holdings | BKNG | 1.10 | 8.91% | 15.8% |
| Starbucks | SBUX | 0.95 | 8.26% | 3.4% |
| Gilead Sciences | GILD | 0.45 | 6.10% | 4.1% |
| Intuitive Surgical | ISRG | 1.15 | 9.13% | 13.5% |
| Vertex Pharma | VRTX | 0.55 | 6.53% | 16.2% |
| Regeneron | REGN | 0.60 | 6.75% | 14.5% |
| ADP | ADP | 0.80 | 7.61% | 12.5% |
| Analog Devices | ADI | 1.15 | 9.13% | 13.8% |
| Lam Research | LRCX | 1.45 | 10.43% | 22.5% |
| Palo Alto Networks | PANW | 1.15 | 9.13% | 28.4% |
| KLA Corp | KLAC | 1.35 | 10.00% | 26.8% |
| Synopsys | SNPS | 1.10 | 8.91% | 21.5% |
| Cadence Design | CDNS | 1.05 | 8.70% | 23.1% |
| MercadoLibre | MELI | 1.55 | 10.86% | 12.5% |
| Mondelez | MDLZ | 0.65 | 6.96% | 8.2% |
| CSX Corp | CSX | 1.05 | 8.70% | 9.5% |
| Marriott Intl | MAR | 1.20 | 9.35% | 12.8% |
| PayPal | PYPL | 1.35 | 10.00% | -14.5% |
| O’Reilly Auto | ORLY | 0.85 | 7.83% | 18.5% |
| Lululemon | LULU | 1.30 | 9.78% | 6.5% |
| Workday | WDAY | 1.25 | 9.56% | 3.8% |
| Moderna | MRNA | 1.60 | 11.08% | -12.5% |
| Airbnb | ABNB | 1.25 | 9.56% | -2.5% |
| Keurig Dr Pepper | KDP | 0.60 | 6.75% | 5.5% |
| Monster Beverage | MNST | 0.85 | 7.83% | 8.5% |
| DexCom | DXCM | 1.10 | 8.91% | 10.2% |
| CrowdStrike | CRWD | 1.40 | 10.21% | 18.5% |
Part 2: Remaining Nasdaq 100 Components
Cost of Equity Estimates
| Company | Ticker | Beta | Cost of Equity (Ke) |
| Autodesk | ADSK | 1.25 | 9.56% |
| Microchip Tech | MCHP | 1.45 | 10.43% |
| NXP Semi | NXPI | 1.35 | 10.00% |
| Cintas | CTAS | 0.95 | 8.26% |
| Paychex | PAYX | 0.90 | 8.05% |
| PACCAR | PCAR | 1.05 | 8.70% |
| Ross Stores | ROST | 1.00 | 8.48% |
| Verisk | VRSK | 0.85 | 7.83% |
| Old Dominion | ODFL | 1.10 | 8.91% |
| Copart | CPRT | 1.05 | 8.70% |
| IDEXX Labs | IDXX | 1.15 | 9.13% |
| Fortinet | FTNT | 1.15 | 9.13% |
| CoStar Group | CSGP | 1.20 | 9.35% |
| Datadog | DDOG | 1.55 | 10.86% |
| The Trade Desk | TTD | 1.65 | 11.30% |
| Biogen | BIIB | 0.55 | 6.53% |
| Exelon | EXC | 0.60 | 6.75% |
| American Electric | AEP | 0.55 | 6.53% |
| Xcel Energy | XEL | 0.60 | 6.75% |
| AstraZeneca | AZN | 0.55 | 6.53% |
| Baker Hughes | BKR | 1.35 | 10.00% |
| Warner Bros Disc | WBD | 1.60 | 11.08% |
| Lucid Group | LCID | 2.10 | 13.24% |
| Rivian | RIVN | 2.25 | 13.89% |
| Zoom Video | ZM | 1.25 | 9.56% |
| Zscaler | ZS | 1.50 | 10.65% |
| Enphase Energy | ENPH | 1.95 | 12.59% |
| Illumina | ILMN | 1.20 | 9.35% |
| Walgreens | WBA | 0.70 | 7.18% |
| Charter Comm | CHTR | 1.10 | 8.91% |
| Micron | MU | 1.35 | 10.00% |
Note: 5-Year CAGR is calculated based on price appreciation from Dec 2020 to Dec 2025. Data sources include Yahoo Finance and Nasdaq official constituent lists.
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