The WACC of Nextech Ar Solutions Corp (NTAR.CN) is 7.5%.
Range | Selected | |
Cost of equity | 6.3% - 9.0% | 7.65% |
Tax rate | 0.4% - 0.6% | 0.5% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 6.1% - 8.9% | 7.5% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.61 | 0.79 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.3% | 9.0% |
Tax rate | 0.4% | 0.6% |
Debt/Equity ratio | 0.06 | 0.06 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 6.1% | 8.9% |
Selected WACC | 7.5% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
NTAR.CN | Nextech Ar Solutions Corp | 0.06 | 0.87 | 0.82 |
EGLX.TO | Enthusiast Gaming Holdings Inc | 3.99 | 1.93 | 0.39 |
EQ.V | EQ Inc | 0.02 | -0.03 | -0.03 |
MDF.TO | mdf Commerce Inc | 0.04 | 0.31 | 0.3 |
MYID.V | Killi Ltd | 0.15 | 1.74 | 1.51 |
RSS.V | Resaas Services Inc | 0 | 0.81 | 0.81 |
Y.TO | Yellow Pages Ltd | 0.25 | 0.51 | 0.4 |
Low | High | |
Unlevered beta | 0.4 | 0.65 |
Relevered beta | 0.42 | 0.69 |
Adjusted relevered beta | 0.61 | 0.79 |
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.