NCI.V WACC - Weighted Average Cost of Capital

The WACC of NTG Clarity Networks Inc (NCI.V) is 6.6%.

The Cost of Equity of NTG Clarity Networks Inc (NCI.V) is 6.85%.

The Cost of Debt of NTG Clarity Networks Inc (NCI.V) is 4.35%.

	Range	Selected
Cost of equity	5.80% - 7.90%	6.85%
Tax rate	26.20% - 27.00%	26.60%
Cost of debt	4.20% - 4.50%	4.35%
WACC	5.6% - 7.5%	6.6%

WACC

NCI.V WACC calculation

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	5.80%	7.90%

Tax rate	26.20%	27.00%
Debt/Equity ratio	0.07	0.07
Cost of debt	4.20%	4.50%

After-tax WACC	5.6%	7.5%


Selected WACC	6.6%

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.