NOX.AX WACC - Weighted Average Cost of Capital
The WACC of Noxopharm Ltd (NOX.AX) is 5.5%.
| Range | Selected | |
| Cost of equity | 6.0% - 10.0% | 8% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 4.0% - 4.6% | 4.3% |
| WACC | 4.4% - 6.6% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.38 | 0.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 10.0% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 4.6% |
| After-tax WACC | 4.4% | 6.6% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NOX.AX | Noxopharm Ltd | 0.9 | 1.61 | 0.98 |
| 1AD.AX | Adalta Ltd | 0.84 | 1.32 | 0.83 |
| 244460.KQ | OliPass Corp | 0.87 | 0 | 0 |
| 304840.KQ | PeopleBio Inc | 0.17 | -0.35 | -0.31 |
| 3164.TW | GenMont Biotech Inc | 0.07 | 0.43 | 0.41 |
| CSL.AX | CSL Ltd | 0.16 | 0.49 | 0.44 |
| DVL.AX | dorsaVi Ltd | 0.16 | 1.28 | 1.15 |
| IMC.AX | Immuron Ltd | 0 | 0.07 | 0.07 |
| KZA.AX | Kazia Therapeutics Ltd | 0.1 | -1.19 | -1.12 |
| NC6.AX | Nanollose Ltd | 0 | -0.75 | -0.75 |
| PTX.AX | Prescient Therapeutics Ltd | 0.01 | 1.61 | 1.6 |
| Low | High | |
| Unlevered beta | 0.07 | 0.44 |
| Relevered beta | 0.07 | 0.72 |
| Adjusted relevered beta | 0.38 | 0.81 |
NOX.AX'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 NOX.AX:
cost_of_equity (8.00%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.38) + 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.