NXST
Nexstar Media Group Inc
Price:  
154.52 
USD
Volume:  
441,935.00
United States | Media
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

NXST WACC - Weighted Average Cost of Capital

The WACC of Nexstar Media Group Inc (NXST) is 6.1%.

The Cost of Equity of Nexstar Media Group Inc (NXST) is 8.95%.
The Cost of Debt of Nexstar Media Group Inc (NXST) is 5.60%.

Range Selected
Cost of equity 7.10% - 10.80% 8.95%
Tax rate 25.70% - 27.60% 26.65%
Cost of debt 5.10% - 6.10% 5.60%
WACC 5.2% - 7.0% 6.1%
WACC

NXST WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.71 1.05
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 10.80%
Tax rate 25.70% 27.60%
Debt/Equity ratio 1.4 1.4
Cost of debt 5.10% 6.10%
After-tax WACC 5.2% 7.0%
Selected WACC 6.1%

NXST'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 NXST:

cost_of_equity (8.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.71) + 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.