NXI.PA WACC - Weighted Average Cost of Capital
The WACC of Nexity SA (NXI.PA) is 4.3%.
| Range | Selected | |
| Cost of equity | 5.1% - 9.3% | 7.2% |
| Tax rate | 33.4% - 36.5% | 34.95% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 3.1% - 5.4% | 4.3% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.36 | 0.78 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 9.3% |
| Tax rate | 33.4% | 36.5% |
| Debt/Equity ratio | 4.15 | 4.15 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 3.1% | 5.4% |
| Selected WACC | 4.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NXI.PA | Nexity SA | 4.15 | 0.94 | 0.26 |
| ALM.ST | ALM Equity AB | 1.25 | 0.5 | 0.28 |
| APPENINN.BD | Appeninn Vagyonkezelo Holding Nyrt | 1.12 | -0.47 | -0.27 |
| AREIT.PA | Altareit SCA | 1.24 | 0.02 | 0.01 |
| BNT1.DE | Eyemaxx Real Estate AG | 44.52 | 0.33 | 0.01 |
| CROS.PA | Crosswood SA | 0 | -0.44 | -0.44 |
| HWG.L | Harworth Group PLC | 0.27 | 0.28 | 0.24 |
| IMMO.BR | Compagnie Immobiliere de Belgique SA | 3.69 | 0.49 | 0.14 |
| REN.MC | Renta Corporacion Real Estate SA | 1.16 | 0.71 | 0.41 |
| YATRA.AS | Yatra Capital Ltd | 0.04 | 0.01 | 0.01 |
| Low | High | |
| Unlevered beta | 0.01 | 0.18 |
| Relevered beta | 0.04 | 0.67 |
| Adjusted relevered beta | 0.36 | 0.78 |
NXI.PA'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 NXI.PA:
cost_of_equity (7.20%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.36) + 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.