NEXTMEDIA.NS WACC - Weighted Average Cost of Capital
The WACC of Next Mediaworks Ltd (NEXTMEDIA.NS) is 7.4%.
| Range | Selected | |
| Cost of equity | 13.5% - 17.1% | 15.3% |
| Tax rate | 0.1% - 0.1% | 0.1% |
| Cost of debt | 4.3% - 7.0% | 5.65% |
| WACC | 6.0% - 8.8% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.8 | 0.99 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.5% | 17.1% |
| Tax rate | 0.1% | 0.1% |
| Debt/Equity ratio | 4.47 | 4.47 |
| Cost of debt | 4.3% | 7.0% |
| After-tax WACC | 6.0% | 8.8% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NEXTMEDIA.NS | Next Mediaworks Ltd | 4.47 | 0.5 | 0.09 |
| 540821.BO | Sadhna Broadcast Ltd | 0.09 | 0.89 | 0.82 |
| 9928.TW | China Television Co | 1.91 | 0.49 | 0.17 |
| BAGFILMS.NS | B.A.G. Films and Media Ltd | 0.83 | 0.55 | 0.3 |
| JUMPNET.NS | Jump Networks Ltd | 0.01 | 0.97 | 0.96 |
| MARI.JK | Mahaka Radio Integra Tbk PT | 1.38 | 0.37 | 0.15 |
| ODVA.ME | Mediaholding PAO | 8.9 | -0.07 | -0.01 |
| RAJTV.NS | Raj Television Network Ltd | 0.09 | -0.38 | -0.35 |
| SEG.AX | Sports Entertainment Group Ltd | 0.65 | -0.55 | -0.33 |
| TVVISION.NS | TV Vision Ltd | 4.19 | 1.04 | 0.2 |
| Low | High | |
| Unlevered beta | 0.13 | 0.18 |
| Relevered beta | 0.7 | 0.99 |
| Adjusted relevered beta | 0.8 | 0.99 |
NEXTMEDIA.NS'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 NEXTMEDIA.NS:
cost_of_equity (15.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.8) + 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.