NEXTMEDIA.NS WACC - Weighted Average Cost of Capital
The WACC of Next Mediaworks Ltd (NEXTMEDIA.NS) is 13.1%.
| Range | Selected | |
| Cost of equity | 15.8% - 22.5% | 19.15% |
| Tax rate | 0.1% - 0.1% | 0.1% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 10.6% - 15.6% | 13.1% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.08 | 1.57 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.8% | 22.5% |
| Tax rate | 0.1% | 0.1% |
| Debt/Equity ratio | 0.8 | 0.8 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 10.6% | 15.6% |
| Selected WACC | 13.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NEXTMEDIA.NS | Next Mediaworks Ltd | 0.8 | 0.45 | 0.25 |
| 534623.BO | Jupiter Infomedia Ltd | 0 | 1.56 | 1.56 |
| 540821.BO | Sadhna Broadcast Ltd | 0.1 | 0.89 | 0.81 |
| BAGFILMS.NS | B.A.G. Films and Media Ltd | 0.83 | 0.6 | 0.33 |
| JUMPNET.NS | Jump Networks Ltd | 0.01 | 0.97 | 0.96 |
| NETWORK18.NS | Network18 Media & Investments Ltd | 0.32 | 1.49 | 1.14 |
| RAJTV.NS | Raj Television Network Ltd | 0.1 | -0.15 | -0.14 |
| TVVISION.NS | TV Vision Ltd | 3.43 | 0.63 | 0.14 |
| ZEEL.NS | Zee Entertainment Enterprises Ltd | 0.02 | 1.38 | 1.36 |
| ZEEMEDIA.NS | Zee Media Corporation Ltd | 0.19 | 1.68 | 1.41 |
| Low | High | |
| Unlevered beta | 0.62 | 1.03 |
| Relevered beta | 1.12 | 1.85 |
| Adjusted relevered beta | 1.08 | 1.57 |
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 (19.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.08) + 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.