NXTM.TA WACC - Weighted Average Cost of Capital

The WACC of Nextcom Ltd (NXTM.TA) is 7.2%.

The Cost of Equity of Nextcom Ltd (NXTM.TA) is 9.60%.

The Cost of Debt of Nextcom Ltd (NXTM.TA) is 6.30%.

	Range	Selected
Cost of equity	8.20% - 11.00%	9.60%
Tax rate	23.90% - 27.30%	25.60%
Cost of debt	5.60% - 7.00%	6.30%
WACC	6.3% - 8.1%	7.2%

WACC

NXTM.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.55	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	11.00%

Tax rate	23.90%	27.30%
Debt/Equity ratio	0.95	0.95
Cost of debt	5.60%	7.00%

After-tax WACC	6.3%	8.1%


Selected WACC	7.2%

NXTM.TA'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 NXTM.TA:

cost_of_equity (9.60%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.55) + 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.