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Nexstar Media Group, Inc. Common Stock (NXST) — WACC Analysis

WACC Breakdown

Nexstar Media Group, Inc. Common Stock (NXST) has a weighted average cost of capital (WACC) of 5.0%. The cost of equity is 9.1%, derived from a beta of 0.87 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.3%. The capital structure is 29.6% equity and 70.4% debt.

Interpretation

A WACC of 5.0% suggests that the market views Nexstar Media Group, Inc. Common Stock as relatively low-risk, with a lower cost of financing.

Investors can compare NXST's WACC of 5.0% against industry peers to gauge its relative financing costs. A beta of 0.87 reflects the stock's volatility relative to the broader market.

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VALUATION

NXST WACC: 5.03% for Nexstar Media Group, Inc. Common Stock

Current inputs imply a 9.08% cost of equity and a 4.21% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Nexstar Media Group, Inc. Common Stock Common Stock (NXST) WACC Results
Weighted Average Cost of Capital
5.03%
Cost of Equity
9.08%
Risk-Free Rate5.22%
Beta0.87
Market Risk Premium4.23%
Cost of Debt
3.32%
Pre-Tax Cost of Debt4.21%
Tax Rate21.00%
Tax Shield0.88%
Capital Structure
Equity: 29.64%($4946.27M)
Debt: 70.36%($11.74B)
Equity Component
2.69%
29.64% × 9.08%
Debt Component
2.34%
70.36% × 3.32%

Nexstar Media Group, Inc. Common Stock (NXST) WACC in context

Nexstar Media Group, Inc. Common Stock (NXST) currently screens with an estimated WACC of 5.03%. That blends a 9.08% cost of equity, a 4.21% pre-tax cost of debt, and a 29.64% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What NXST WACC implies

A 5.03% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates NXST

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.87 and equity accounts for 29.64% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.