NVLG.TA WACC - Weighted Average Cost of Capital

The WACC of Novolog Pharm Up 1966 Ltd (NVLG.TA) is 9.1%.

The Cost of Equity of Novolog Pharm Up 1966 Ltd (NVLG.TA) is 10.85%.

The Cost of Debt of Novolog Pharm Up 1966 Ltd (NVLG.TA) is 7.00%.

	Range	Selected
Cost of equity	9.40% - 12.30%	10.85%
Tax rate	25.30% - 26.80%	26.05%
Cost of debt	5.60% - 8.40%	7.00%
WACC	7.8% - 10.4%	9.1%

WACC

NVLG.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.75	0.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.40%	12.30%

Tax rate	25.30%	26.80%
Debt/Equity ratio	0.43	0.43
Cost of debt	5.60%	8.40%

After-tax WACC	7.8%	10.4%


Selected WACC	9.1%

NVLG.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 NVLG.TA:

cost_of_equity (10.85%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.75) + 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.