NCI.V WACC - Weighted Average Cost of Capital
The WACC of NTG Clarity Networks Inc (NCI.V) is 6.6%.
| Range | Selected | |
| Cost of equity | 5.8% - 7.9% | 6.85% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.2% - 4.5% | 4.35% |
| WACC | 5.6% - 7.5% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.38 | 0.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 7.9% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 4.2% | 4.5% |
| After-tax WACC | 5.6% | 7.5% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NCI.V | NTG Clarity Networks Inc | 0.07 | 0.63 | 0.6 |
| AKR.V | Ackroo Inc | 0.26 | -0.03 | -0.03 |
| BEW.V | Bewhere Holdings Inc | 0.01 | 0.5 | 0.49 |
| BLIN | Bridgeline Digital Inc | 0.03 | -0.1 | -0.1 |
| EL.V | Engagement Labs Inc | 0.55 | 0.35 | 0.25 |
| EPAZ | Auto Dataflow Inc | 8.78 | 1.56 | 0.21 |
| FLXI | Flexiinternational Software Inc | 0.09 | 0.27 | 0.25 |
| TKX.V | Trackx Holdings Inc | 3.23 | 0.4 | 0.12 |
| Low | High | |
| Unlevered beta | 0.19 | 0.25 |
| Relevered beta | 0.07 | 0.24 |
| Adjusted relevered beta | 0.38 | 0.49 |
NCI.V's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for NCI.V:
cost_of_equity (6.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.38) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.