NFI.TO WACC - Weighted Average Cost of Capital

The WACC of NFI Group Inc (NFI.TO) is 10.8%.

The Cost of Equity of NFI Group Inc (NFI.TO) is 10.80%.

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

	Range	Selected
Cost of equity	8.50% - 13.10%	10.80%
Tax rate	18.00% - 27.90%	22.95%
Cost of debt	8.30% - 20.20%	14.25%
WACC	7.9% - 13.6%	10.8%

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	1.05	1.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	13.10%

Tax rate	18.00%	27.90%
Debt/Equity ratio	0.61	0.61
Cost of debt	8.30%	20.20%

After-tax WACC	7.9%	13.6%


Selected WACC	10.8%

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 (10.80%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.05) + 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.