NEX.SI WACC - Weighted Average Cost of Capital

The WACC of Reclaims Global Ltd (NEX.SI) is 28.4%.

The Cost of Equity of Reclaims Global Ltd (NEX.SI) is 10.10%.

The Cost of Debt of Reclaims Global Ltd (NEX.SI) is 57.30%.

	Range	Selected
Cost of equity	8.70% - 11.50%	10.10%
Tax rate	16.10% - 18.50%	17.30%
Cost of debt	4.20% - 110.40%	57.30%
WACC	6.1% - 50.8%	28.4%

WACC

NEX.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.18	1.28

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	11.50%

Tax rate	16.10%	18.50%
Debt/Equity ratio	1	1
Cost of debt	4.20%	110.40%

After-tax WACC	6.1%	50.8%


Selected WACC	28.4%

NEX.SI'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 NEX.SI:

cost_of_equity (10.10%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (1.18) + 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.