NXB.WA WACC - Weighted Average Cost of Capital

The WACC of Nextbike Polska SA (NXB.WA) is 9.4%.

The Cost of Equity of Nextbike Polska SA (NXB.WA) is 10.35%.

The Cost of Debt of Nextbike Polska SA (NXB.WA) is 5.30%.

	Range	Selected
Cost of equity	8.70% - 12.00%	10.35%
Tax rate	11.70% - 22.70%	17.20%
Cost of debt	4.00% - 6.60%	5.30%
WACC	7.9% - 10.9%	9.4%

WACC

NXB.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.5	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	12.00%

Tax rate	11.70%	22.70%
Debt/Equity ratio	0.18	0.18
Cost of debt	4.00%	6.60%

After-tax WACC	7.9%	10.9%


Selected WACC	9.4%

NXB.WA'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 NXB.WA:

cost_of_equity (10.35%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.5) + 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.