NGEN.V WACC - Weighted Average Cost of Capital
The WACC of NervGen Pharma Corp (NGEN.V) is 7.4%.
| Range | Selected | |
| Cost of equity | 5.5% - 9.2% | 7.35% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.5% - 9.2% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.33 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 9.2% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.5% | 9.2% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NGEN.V | NervGen Pharma Corp | 0 | -0.41 | -0.41 |
| ACER | Acer Therapeutics Inc | 0.72 | 0.43 | 0.28 |
| AVCN.TO | Avicanna Inc | 0.06 | 2.01 | 1.93 |
| BETR.CN | BetterLife Pharma Inc | 0.06 | -0.16 | -0.15 |
| BVXV | BiondVax Pharmaceuticals Ltd | 1.06 | 1.83 | 1.03 |
| CNBX | Cannabics Pharmaceuticals Inc | 256.97 | 0.32 | 0 |
| EARS | Auris Medical Holding Ltd | 0.01 | 1.42 | 1.4 |
| NBY | NovaBay Pharmaceuticals Inc | 0.16 | 1.65 | 1.48 |
| NLSP | NLS Pharmaceutics AG | 0.41 | 0 | 0 |
| TRVI | Trevi Therapeutics Inc | 0 | -0.02 | -0.02 |
| Low | High | |
| Unlevered beta | 0 | 0.58 |
| Relevered beta | 0 | 0.57 |
| Adjusted relevered beta | 0.33 | 0.71 |
NGEN.V'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 NGEN.V:
cost_of_equity (7.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + 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.