NWCN WACC - Weighted Average Cost of Capital
The WACC of Network CN Inc (NWCN) is 3.3%.
| Range | Selected | |
| Cost of equity | 5.4% - 174.8% | 90.1% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 3.0% - 3.6% | 3.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 30.35 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 174.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 576.04 | 576.04 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 3.0% | 3.6% |
| Selected WACC | 3.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NWCN | Network CN Inc | 576.04 | 40.49 | 0.1 |
| ACTL | Artec Global Media Inc | 968.45 | 0 | 0 |
| ADX.CN | Advantex Marketing International Inc | 12.23 | 0 | 0 |
| DBMM | Digital Brand Media & Marketing Group Inc | 2.06 | -1.6 | -0.64 |
| ICLK | iClick Interactive Asia Group Ltd | 0.04 | -1.21 | -1.17 |
| MDCA | MDC Partners Inc | 2.02 | 0.89 | 0.36 |
| MOBQ | Mobiquity Technologies Inc | 0 | 0.73 | 0.73 |
| NCMI | National Cinemedia Inc | 0.02 | 0.27 | 0.27 |
| SPN.V | Snipp Interactive Inc | 0.03 | 1.05 | 1.02 |
| UCPA | United Communications Partners Inc | 0.2 | -0.78 | -0.68 |
| Low | High | |
| Unlevered beta | 0 | 0.16 |
| Relevered beta | 0 | 44.81 |
| Adjusted relevered beta | 0.33 | 30.35 |
NWCN'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 NWCN:
cost_of_equity (90.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.