VYX WACC - Weighted Average Cost of Capital
The WACC of NCR Voyix Corp (VYX) is 8.9%.
| Range | Selected | |
| Cost of equity | 10.3% - 13.6% | 11.95% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.8% - 7.0% | 6.4% |
| WACC | 7.8% - 10.0% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.41 | 1.56 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.3% | 13.6% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.74 | 0.74 |
| Cost of debt | 5.8% | 7.0% |
| After-tax WACC | 7.8% | 10.0% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VYX | NCR Voyix Corp | 0.74 | 1.44 | 0.93 |
| ADBE | Adobe Inc | 0.03 | 1.01 | 0.98 |
| CLSK | CleanSpark Inc | 0.03 | 2 | 1.96 |
| EPAY | Bottomline Technologies (DE) Inc | 0.05 | 1.27 | 1.23 |
| JAMF | Jamf Holding Corp | 0.28 | 1.07 | 0.89 |
| PD | PagerDuty Inc | 0.31 | 1.38 | 1.13 |
| QTWO | Q2 Holdings Inc | 0.09 | 1.44 | 1.35 |
| Low | High | |
| Unlevered beta | 1.04 | 1.19 |
| Relevered beta | 1.61 | 1.84 |
| Adjusted relevered beta | 1.41 | 1.56 |
VYX'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 VYX:
cost_of_equity (11.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.41) + 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.