NEXTS.PA WACC - Weighted Average Cost of Capital
The WACC of Nextstage SCA (NEXTS.PA) is 7.4%.
| Range | Selected | |
| Cost of equity | 6.5% - 8.9% | 7.7% |
| Tax rate | 25.9% - 27.1% | 26.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.3% - 8.5% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.61 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 8.9% |
| Tax rate | 25.9% | 27.1% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.3% | 8.5% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NEXTS.PA | Nextstage SCA | 0.08 | 0.29 | 0.27 |
| A7A.DE | Finlab AG | 0.16 | 0.89 | 0.8 |
| ALPN.SW | Alpine Select AG | 0.01 | 0.36 | 0.36 |
| BPM.L | B.P. Marsh & Partners PLC | 0 | 0.41 | 0.41 |
| EVLI.HE | Evli Pankki Oyj | 0.22 | 0.56 | 0.48 |
| ISGSY.IS | Is Girisim Sermayesi Yatirim Ortakligi AS | 0 | 0.8 | 0.8 |
| MCI.WA | MCI Capital SA | 0.22 | 0.42 | 0.36 |
| MERC.L | Mercia Asset Management PLC | 0.01 | 1.42 | 1.41 |
| REC.L | Record PLC | 0 | 0.25 | 0.25 |
| TITAN.HE | Titanium Oyj | 0.02 | 0.64 | 0.63 |
| Low | High | |
| Unlevered beta | 0.39 | 0.54 |
| Relevered beta | 0.42 | 0.57 |
| Adjusted relevered beta | 0.61 | 0.71 |
NEXTS.PA'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 NEXTS.PA:
cost_of_equity (7.70%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.61) + 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.