NIHK WACC - Weighted Average Cost of Capital
The WACC of Video River Networks Inc (NIHK) is 6.7%.
| Range | Selected | |
| Cost of equity | 5.5% - 9.1% | 7.3% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.2% - 8.2% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.35 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 9.1% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.2 | 0.2 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.2% | 8.2% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NIHK | Video River Networks Inc | 0.2 | 0.91 | 0.79 |
| ATVK | Ameritek Ventures | 0.33 | -1.1 | -0.88 |
| FRTN | Fortran Corp | 2.51 | 1.7 | 0.6 |
| IFXY | Infrax Systems Inc | 0.51 | 0.74 | 0.54 |
| IGEN | IGEN Networks Corp | 245.62 | 0.31 | 0 |
| INVT | Inventergy Global Inc | 42.47 | 1.23 | 0.04 |
| TTZ.V | Total Telcom Inc | 0.08 | 0.85 | 0.8 |
| VTI.V | Valdor Technology International Inc | 0.08 | -0.14 | -0.14 |
| YFI.V | Edgewater Wireless Systems Inc | 0.02 | -0.64 | -0.63 |
| Low | High | |
| Unlevered beta | 0.01 | 0.44 |
| Relevered beta | 0.03 | 0.64 |
| Adjusted relevered beta | 0.35 | 0.76 |
NIHK'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 NIHK:
cost_of_equity (7.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.35) + 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.