NXTGMS.HE WACC - Weighted Average Cost of Capital

The WACC of Next Games Oyj (NXTGMS.HE) is 6.5%.

The Cost of Equity of Next Games Oyj (NXTGMS.HE) is 6.60%.

The Cost of Debt of Next Games Oyj (NXTGMS.HE) is 5.50%.

	Range	Selected
Cost of equity	5.40% - 7.80%	6.60%
Tax rate	5.20% - 5.90%	5.55%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.2% - 7.7%	6.5%

WACC

NXTGMS.HE WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.37	0.53

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.40%	7.80%

Tax rate	5.20%	5.90%
Debt/Equity ratio	0.08	0.08
Cost of debt	4.00%	7.00%

After-tax WACC	5.2%	7.7%


Selected WACC	6.5%

NXTGMS.HE'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 NXTGMS.HE:

cost_of_equity (6.60%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.37) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.