NBLY.TO WACC - Weighted Average Cost of Capital

The WACC of Neighbourly Pharmacy Inc (NBLY.TO) is 8.5%.

The Cost of Equity of Neighbourly Pharmacy Inc (NBLY.TO) is 6.95%.

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

	Range	Selected
Cost of equity	5.20% - 8.70%	6.95%
Tax rate	4.40% - 6.30%	5.35%
Cost of debt	6.60% - 20.20%	13.40%
WACC	5.5% - 11.5%	8.5%

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	0.4	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.20%	8.70%

Tax rate	4.40%	6.30%
Debt/Equity ratio	0.38	0.38
Cost of debt	6.60%	20.20%

After-tax WACC	5.5%	11.5%


Selected WACC	8.5%

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 (6.95%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.4) + 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.