NXTH
NXT Nutritionals Holdings Inc
Price:  
USD
Volume:  
49,140
United States | Personal Products

NXTH WACC - Weighted Average Cost of Capital

The WACC of NXT Nutritionals Holdings Inc (NXTH) is 18.4%.

The Cost of Equity of NXT Nutritionals Holdings Inc (NXTH) is 2962.45%.
The Cost of Debt of NXT Nutritionals Holdings Inc (NXTH) is 25.1%.

RangeSelected
Cost of equity36.0% - 5888.9%2962.45%
Tax rate26.2% - 27.0%26.6%
Cost of debt25.1% - 25.1%25.1%
WACC18.5% - 18.4%18.4%
WACC

NXTH WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta6.981050.72
Additional risk adjustments0.0%0.5%
Cost of equity36.0%5888.9%
Tax rate26.2%27.0%
Debt/Equity ratio
135715.48135715.48
Cost of debt25.1%25.1%
After-tax WACC18.5%18.4%
Selected WACC18.4%

NXTH'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 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.