NLH.V WACC - Weighted Average Cost of Capital

The WACC of Nova Leap Health Corp (NLH.V) is 7.1%.

The Cost of Equity of Nova Leap Health Corp (NLH.V) is 7.40%.

The Cost of Debt of Nova Leap Health Corp (NLH.V) is 5.10%.

	Range	Selected
Cost of equity	5.70% - 9.10%	7.40%
Tax rate	26.90% - 29.60%	28.25%
Cost of debt	4.80% - 5.40%	5.10%
WACC	5.5% - 8.6%	7.1%

WACC

NLH.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.37	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.70%	9.10%

Tax rate	26.90%	29.60%
Debt/Equity ratio	0.11	0.11
Cost of debt	4.80%	5.40%

After-tax WACC	5.5%	8.6%


Selected WACC	7.1%

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 (7.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.37) + 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.