NXMR
Nextmart Inc
Price:  
0.00 
USD
Volume:  
146,260.00
United States | Media
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

NXMR WACC - Weighted Average Cost of Capital

The WACC of Nextmart Inc (NXMR) is 5.8%.

The Cost of Equity of Nextmart Inc (NXMR) is 42.35%.
The Cost of Debt of Nextmart Inc (NXMR) is 5.00%.

Range Selected
Cost of equity 33.30% - 51.40% 42.35%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.3% - 6.3% 5.8%
WACC

NXMR WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 6.4 8.31
Additional risk adjustments 0.0% 0.5%
Cost of equity 33.30% 51.40%
Tax rate 26.20% 27.00%
Debt/Equity ratio 16.92 16.92
Cost of debt 5.00% 5.00%
After-tax WACC 5.3% 6.3%
Selected WACC 5.8%

NXMR'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 NXMR:

cost_of_equity (42.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (6.4) + 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.