NTRB
Nutriband Inc
Price:  
6.37 
USD
Volume:  
47,110.00
United States | Personal Products
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NTRB WACC - Weighted Average Cost of Capital

The WACC of Nutriband Inc (NTRB) is 8.1%.

The Cost of Equity of Nutriband Inc (NTRB) is 8.15%.
The Cost of Debt of Nutriband Inc (NTRB) is 5.50%.

Range Selected
Cost of equity 6.00% - 10.30% 8.15%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 4.00% - 7.00% 5.50%
WACC 6.0% - 10.3% 8.1%
WACC

NTRB WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.46 0.97
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.00% 10.30%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0 0
Cost of debt 4.00% 7.00%
After-tax WACC 6.0% 10.3%
Selected WACC 8.1%

NTRB'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 NTRB:

cost_of_equity (8.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.46) + 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.