NFI.TO WACC - Weighted Average Cost of Capital

The WACC of NFI Group Inc (NFI.TO) is 10.5%.

The Cost of Equity of NFI Group Inc (NFI.TO) is 10.45%.

The Cost of Debt of NFI Group Inc (NFI.TO) is 14.25%.

	Range	Selected
Cost of equity	8.40% - 12.50%	10.45%
Tax rate	18.00% - 27.90%	22.95%
Cost of debt	8.30% - 20.20%	14.25%
WACC	7.8% - 13.3%	10.5%

WACC

NFI.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.02	1.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	12.50%

Tax rate	18.00%	27.90%
Debt/Equity ratio	0.63	0.63
Cost of debt	8.30%	20.20%

After-tax WACC	7.8%	13.3%


Selected WACC	10.5%

NFI.TO'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 NFI.TO:

cost_of_equity (10.45%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.02) + 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.