NEXTMEDIA.NS WACC - Weighted Average Cost of Capital

The WACC of Next Mediaworks Ltd (NEXTMEDIA.NS) is 16.8%.

The Cost of Equity of Next Mediaworks Ltd (NEXTMEDIA.NS) is 20.60%.

The Cost of Debt of Next Mediaworks Ltd (NEXTMEDIA.NS) is 13.95%.

	Range	Selected
Cost of equity	17.30% - 23.90%	20.60%
Tax rate	0.10% - 0.10%	0.10%
Cost of debt	4.00% - 23.90%	13.95%
WACC	9.7% - 23.9%	16.8%

WACC

NEXTMEDIA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.25	1.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.30%	23.90%

Tax rate	0.10%	0.10%
Debt/Equity ratio	1.32	1.32
Cost of debt	4.00%	23.90%

After-tax WACC	9.7%	23.9%


Selected WACC	16.8%

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 (20.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.25) + 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.