NBLY.TO WACC - Weighted Average Cost of Capital
The WACC of Neighbourly Pharmacy Inc (NBLY.TO) is 8.5%.
| Range | Selected | |
| Cost of equity | 5.2% - 8.7% | 6.95% |
| Tax rate | 4.4% - 6.3% | 5.35% |
| Cost of debt | 6.6% - 20.2% | 13.4% |
| WACC | 5.5% - 11.5% | 8.5% |
| 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 | 5.2% | 8.7% |
| Tax rate | 4.4% | 6.3% |
| Debt/Equity ratio | 0.38 | 0.38 |
| Cost of debt | 6.6% | 20.2% |
| After-tax WACC | 5.5% | 11.5% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NBLY.TO | Neighbourly Pharmacy Inc | 0.38 | -0.4 | -0.29 |
| CRRX.TO | CareRx Corp | 0.44 | 0.24 | 0.17 |
| ODV.V | Osisko Development Corp | 0.13 | 1.78 | 1.58 |
| Low | High | |
| Unlevered beta | 0.07 | 0.45 |
| Relevered beta | 0.1 | 0.61 |
| Adjusted relevered beta | 0.4 | 0.74 |
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.