NBLY.TO
Neighbourly Pharmacy Inc
Price:  
18.60 
CAD
Volume:  
345,890.00
Canada | Food & Staples Retailing
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

NBLY.TO WACC - Weighted Average Cost of Capital

The WACC of Neighbourly Pharmacy Inc (NBLY.TO) is 8.6%.

The Cost of Equity of Neighbourly Pharmacy Inc (NBLY.TO) is 7.10%.
The Cost of Debt of Neighbourly Pharmacy Inc (NBLY.TO) is 13.40%.

Range Selected
Cost of equity 5.30% - 8.90% 7.10%
Tax rate 4.40% - 6.30% 5.35%
Cost of debt 6.60% - 20.20% 13.40%
WACC 5.6% - 11.6% 8.6%
WACC

NBLY.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.42 0.77
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.30% 8.90%
Tax rate 4.40% 6.30%
Debt/Equity ratio 0.38 0.38
Cost of debt 6.60% 20.20%
After-tax WACC 5.6% 11.6%
Selected WACC 8.6%

NBLY.TO'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 NBLY.TO:

cost_of_equity (7.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.42) + 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.