NVEI.TO
Nuvei Corp
Price:  
47.61 
CAD
Volume:  
13,638.00
Canada | IT Services
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NVEI.TO WACC - Weighted Average Cost of Capital

The WACC of Nuvei Corp (NVEI.TO) is 7.8%.

The Cost of Equity of Nuvei Corp (NVEI.TO) is 8.00%.
The Cost of Debt of Nuvei Corp (NVEI.TO) is 8.50%.

Range Selected
Cost of equity 6.60% - 9.40% 8.00%
Tax rate 13.90% - 23.00% 18.45%
Cost of debt 8.40% - 8.60% 8.50%
WACC 6.8% - 8.9% 7.8%
WACC

NVEI.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.68 0.87
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.60% 9.40%
Tax rate 13.90% 23.00%
Debt/Equity ratio 0.26 0.26
Cost of debt 8.40% 8.60%
After-tax WACC 6.8% 8.9%
Selected WACC 7.8%

NVEI.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 NVEI.TO:

cost_of_equity (8.00%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.68) + 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.