NXTMH.HE WACC - Weighted Average Cost of Capital

The WACC of Nexstim Oyj (NXTMH.HE) is 6.2%.

The Cost of Equity of Nexstim Oyj (NXTMH.HE) is 5.85%.

The Cost of Debt of Nexstim Oyj (NXTMH.HE) is 13.35%.

	Range	Selected
Cost of equity	4.50% - 7.20%	5.85%
Tax rate	0.40% - 0.40%	0.40%
Cost of debt	4.00% - 22.70%	13.35%
WACC	4.5% - 7.9%	6.2%

WACC

NXTMH.HE WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.23	0.44

Additional risk adjustments	0.5%	1.0%
Cost of equity	4.50%	7.20%

Tax rate	0.40%	0.40%
Debt/Equity ratio	0.05	0.05
Cost of debt	4.00%	22.70%

After-tax WACC	4.5%	7.9%


Selected WACC	6.2%

NXTMH.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 NXTMH.HE:

cost_of_equity (5.85%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.23) + 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.