NSB.AX
NeuroScientific Biopharmaceuticals Ltd
Price:  
0.14 
AUD
Volume:  
53,663
Australia | Biotechnology

NSB.AX WACC - Weighted Average Cost of Capital

The WACC of NeuroScientific Biopharmaceuticals Ltd (NSB.AX) is 6.9%.

The Cost of Equity of NeuroScientific Biopharmaceuticals Ltd (NSB.AX) is 10.25%.
The Cost of Debt of NeuroScientific Biopharmaceuticals Ltd (NSB.AX) is 5%.

RangeSelected
Cost of equity5.3% - 15.2%10.25%
Tax rate30.0% - 30.0%30%
Cost of debt5.0% - 5.0%5%
WACC4.4% - 9.3%6.9%
WACC

NSB.AX WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium5.1%6.1%
Adjusted beta0.261.66
Additional risk adjustments0.0%0.5%
Cost of equity5.3%15.2%
Tax rate30.0%30.0%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC4.4%9.3%
Selected WACC6.9%

NSB.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 NSB.AX:

cost_of_equity (10.25%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.26) + 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.