NDVN WACC - Weighted Average Cost of Capital
The WACC of nDivision Inc (NDVN) is 7.8%.
| Range | Selected | |
| Cost of equity | 9.9% - 16.1% | 13% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 10.8% | 8.9% |
| WACC | 6.1% - 9.5% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.0% | 6.0% |
| Adjusted beta | 1.14 | 1.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.9% | 16.1% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 3.93 | 3.93 |
| Cost of debt | 7.0% | 10.8% |
| After-tax WACC | 6.1% | 9.5% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NDVN | nDivision Inc | 3.93 | 1.08 | 0.28 |
| COWI | CoroWare Inc | 59.14 | -23.93 | -0.54 |
| EAXR | Ealixir Inc | 0.17 | -0.13 | -0.12 |
| HCKT | Hackett Group Inc | 0.02 | 0.87 | 0.86 |
| IMCI | Infinite Group Inc | 38942.31 | 1.06 | 0 |
| OMQS | Omniq Corp | 13.12 | 3.53 | 0.33 |
| SANT | Santeon Group Inc | 0.27 | 2.27 | 1.89 |
| TSRI | TSR Inc | 1.11 | 1.07 | 0.59 |
| Low | High | |
| Unlevered beta | 0.22 | 0.39 |
| Relevered beta | 1.21 | 2.22 |
| Adjusted relevered beta | 1.14 | 1.82 |
NDVN'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 NDVN:
cost_of_equity (13.00%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (1.14) + 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.