NLAB
Nuoncology Labs Inc
Price:  
0.03 
USD
Volume:  
20,330.00
United States | N/A
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NLAB WACC - Weighted Average Cost of Capital

The WACC of Nuoncology Labs Inc (NLAB) is 7.1%.

The Cost of Equity of Nuoncology Labs Inc (NLAB) is 10.55%.
The Cost of Debt of Nuoncology Labs Inc (NLAB) is 5.00%.

Range Selected
Cost of equity 9.10% - 12.00% 10.55%
Tax rate 27.00% - 27.00% 27.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.4% - 7.8% 7.1%
WACC

NLAB WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.2% 5.2%
Adjusted beta 1.4 1.5
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.10% 12.00%
Tax rate 27.00% 27.00%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 6.4% 7.8%
Selected WACC 7.1%

NLAB'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 NLAB:

cost_of_equity (10.55%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (1.4) + 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.