NEXT.OL WACC - Weighted Average Cost of Capital
The WACC of Next Biometrics Group ASA (NEXT.OL) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.1% - 7.5% | 6.3% |
| Tax rate | 0.4% - 1.4% | 0.9% |
| Cost of debt | 5.6% - 7.0% | 6.3% |
| WACC | 5.1% - 7.5% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.34 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 7.5% |
| Tax rate | 0.4% | 1.4% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.6% | 7.0% |
| After-tax WACC | 5.1% | 7.5% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NEXT.OL | Next Biometrics Group ASA | 0.01 | 0.47 | 0.47 |
| ALDRV.PA | Drone Volt SA | 0.31 | 0.66 | 0.51 |
| ALM.PA | Alpha MOS SA | 0.1 | -1.1 | -1 |
| ALW.MI | algoWatt SpA | 1.45 | 0.41 | 0.17 |
| ANOT.ST | Anoto Group AB | 0.05 | 1.69 | 1.6 |
| OTAQ.L | OTAQ PLC | 0.97 | -0.77 | -0.39 |
| PIP.L | Pipehawk PLC | 11.55 | 0.45 | 0.04 |
| UVEL.L | UniVision Engineering Ltd | 5.05 | -1.78 | -0.29 |
| VGO.WA | Vigo System SA | 0.11 | 0.74 | 0.67 |
| WPHO.L | Windar Photonics PLC | 0.03 | -0.02 | -0.02 |
| Low | High | |
| Unlevered beta | 0.01 | 0.29 |
| Relevered beta | 0.01 | 0.28 |
| Adjusted relevered beta | 0.34 | 0.52 |
NEXT.OL'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 NEXT.OL:
cost_of_equity (6.30%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.34) + 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.