NLH.V WACC - Weighted Average Cost of Capital
The WACC of Nova Leap Health Corp (NLH.V) is 7.7%.
| Range | Selected | |
| Cost of equity | 6.7% - 10.1% | 8.4% |
| Tax rate | 26.9% - 29.6% | 28.25% |
| Cost of debt | 4.0% - 4.6% | 4.3% |
| WACC | 6.2% - 9.2% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.56 | 0.86 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 10.1% |
| Tax rate | 26.9% | 29.6% |
| Debt/Equity ratio | 0.16 | 0.16 |
| Cost of debt | 4.0% | 4.6% |
| After-tax WACC | 6.2% | 9.2% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NLH.V | Nova Leap Health Corp | 0.16 | -0.01 | -0.01 |
| AIH | Aesthetic Medical International Holdings Group Ltd | 3.4 | 1.62 | 0.47 |
| CCEL | Cryo-Cell International Inc | 0.21 | -0.18 | -0.15 |
| CTHZ | Cancer Treatment Holdings Inc | 0.37 | 0.33 | 0.26 |
| FCHS | First Choice Healthcare Solutions Inc | 79.74 | 0.33 | 0.01 |
| IDXG | Interpace Biosciences Inc | 2.37 | 1.68 | 0.62 |
| IOM.V | Assure Holdings Corp | 0.14 | 1.89 | 1.72 |
| MBCN.TO | MindBeacon Holdings Inc | 0.02 | 0.91 | 0.9 |
| PMD | Psychemedics Corp | 0.02 | 1.03 | 1.02 |
| XGN | Exagen Inc | 0.19 | 0.96 | 0.85 |
| Low | High | |
| Unlevered beta | 0.39 | 0.71 |
| Relevered beta | 0.34 | 0.79 |
| Adjusted relevered beta | 0.56 | 0.86 |
NLH.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 NLH.V:
cost_of_equity (8.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.56) + 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.