NPHC WACC - Weighted Average Cost of Capital

The WACC of Nutra Pharma Corp (NPHC) is 6.8%.

The Cost of Equity of Nutra Pharma Corp (NPHC) is 37.15%.

The Cost of Debt of Nutra Pharma Corp (NPHC) is 5.50%.

	Range	Selected
Cost of equity	21.50% - 52.80%	37.15%
Tax rate	26.20% - 27.00%	26.60%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.5% - 9.1%	6.8%

WACC

NPHC WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	3.84	8.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	21.50%	52.80%

Tax rate	26.20%	27.00%
Debt/Equity ratio	10.95	10.95
Cost of debt	4.00%	7.00%

After-tax WACC	4.5%	9.1%


Selected WACC	6.8%

NPHC'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 NPHC:

cost_of_equity (37.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (3.84) + 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.