NTAR.CN
Nextech Ar Solutions Corp
Price:  
0.04 
CAD
Volume:  
86,487
Canada | Internet & Direct Marketing Retail

NTAR.CN WACC - Weighted Average Cost of Capital

The WACC of Nextech Ar Solutions Corp (NTAR.CN) is 7.5%.

The Cost of Equity of Nextech Ar Solutions Corp (NTAR.CN) is 7.65%.
The Cost of Debt of Nextech Ar Solutions Corp (NTAR.CN) is 5.5%.

RangeSelected
Cost of equity6.3% - 9.0%7.65%
Tax rate0.4% - 0.6%0.5%
Cost of debt4.0% - 7.0%5.5%
WACC6.1% - 8.9%7.5%
WACC

NTAR.CN WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta0.610.79
Additional risk adjustments0.0%0.5%
Cost of equity6.3%9.0%
Tax rate0.4%0.6%
Debt/Equity ratio
0.060.06
Cost of debt4.0%7.0%
After-tax WACC6.1%8.9%
Selected WACC7.5%

NTAR.CN WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.40.65
Relevered beta0.420.69
Adjusted relevered beta0.610.79

NTAR.CN'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 NTAR.CN:

cost_of_equity (7.65%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * 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.