The WACC of NXT Nutritionals Holdings Inc (NXTH) is 18.4%.
Range | Selected | |
Cost of equity | 36.0% - 5888.9% | 2962.45% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 25.1% - 25.1% | 25.1% |
WACC | 18.5% - 18.4% | 18.4% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 6.98 | 1050.72 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 36.0% | 5888.9% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 135715.48 | 135715.48 |
Cost of debt | 25.1% | 25.1% |
After-tax WACC | 18.5% | 18.4% |
Selected WACC | 18.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
NXTH | NXT Nutritionals Holdings Inc | 135715.48 | 185.19 | 0 |
EVE.V | Eve & Co Inc | 5.29 | 0.89 | 0.18 |
FITX | Creative Edge Nutrition Inc | 29.9 | 0.02 | 0 |
GBLP | Global Pharmatech Inc | 0.03 | 0.17 | 0.16 |
GENX.V | GenixPharmaceucticals Corporation | 0.6 | 0.22 | 0.15 |
JOEY | Joey New York Inc | 106.89 | 0 | 0 |
LQWC | Lifequest World Corp | 3.18 | -0.68 | -0.2 |
NUUU | Rejuvel Bio-Sciences Inc | 307.09 | 0 | 0 |
NUVM | NuVim Inc | 0.57 | -0.44 | -0.31 |
NWYU | New You Inc | 67.79 | 0.99 | 0.02 |
Low | High | |
Unlevered beta | 0 | 0.01 |
Relevered beta | 9.93 | 1567.75 |
Adjusted relevered beta | 6.98 | 1050.72 |
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 NXTH:
cost_of_equity (2,962.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (6.98) + 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.