NBRV
Nabriva Therapeutics PLC
Price:  
1.42 
USD
Volume:  
717,233
Ireland | Pharmaceuticals

NBRV WACC - Weighted Average Cost of Capital

The WACC of Nabriva Therapeutics PLC (NBRV) is 7.4%.

The Cost of Equity of Nabriva Therapeutics PLC (NBRV) is 8.6%.
The Cost of Debt of Nabriva Therapeutics PLC (NBRV) is 6.35%.

RangeSelected
Cost of equity7.0% - 10.2%8.6%
Tax rate0.8% - 1.4%1.1%
Cost of debt5.7% - 7.0%6.35%
WACC6.3% - 8.4%7.4%
WACC

NBRV WACC calculation

CategoryLowHigh
Long-term bond rate4.2%4.7%
Equity market risk premium5.0%6.0%
Adjusted beta0.570.83
Additional risk adjustments0.0%0.5%
Cost of equity7.0%10.2%
Tax rate0.8%1.4%
Debt/Equity ratio
1.151.15
Cost of debt5.7%7.0%
After-tax WACC6.3%8.4%
Selected WACC7.4%

NBRV'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 NBRV:

cost_of_equity (8.60%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.57) + 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.