NGY.V WACC - Weighted Average Cost of Capital
The WACC of Nexera Energy Inc (NGY.V) is 4.3%.
| Range | Selected | |
| Cost of equity | 5.9% - 7.9% | 6.9% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.1% - 4.5% | 4.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.41 | 0.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.9% | 7.9% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 4.05 | 4.05 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.1% | 4.5% |
| Selected WACC | 4.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NGY.V | Nexera Energy Inc | 4.05 | 6.1 | 1.54 |
| AMAZ | Amazing Energy Oil and Gas Co | 621.81 | 1.07 | 0 |
| DBRM | Daybreak Oil and Gas Inc | 36.67 | 1.52 | 0.05 |
| GASE | Gase Energy Inc | 33.89 | -0.62 | -0.02 |
| MCS.V | McChip Resources Inc | 0.2 | 0.58 | 0.5 |
| STTX | Stratex Oil & Gas Holdings Inc | 60.27 | -0.72 | -0.02 |
| TPC.V | Tenth Avenue Petroleum Corp | 0.04 | 0.54 | 0.52 |
| TRSI | Trophy Resources Inc | 41.12 | 1.43 | 0.05 |
| TRXO | Columbine Valley Resources Inc | 2.04 | 0.18 | 0.07 |
| WCE.V | WesCan Energy Corp | 0.66 | 1.05 | 0.7 |
| Low | High | |
| Unlevered beta | 0.05 | 0.24 |
| Relevered beta | 0.12 | 0.24 |
| Adjusted relevered beta | 0.41 | 0.49 |
NGY.V'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 NGY.V:
cost_of_equity (6.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.41) + 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.