NVA.WA WACC - Weighted Average Cost of Capital

The WACC of PA Nova SA (NVA.WA) is 8.1%.

The Cost of Equity of PA Nova SA (NVA.WA) is 15.25%.

The Cost of Debt of PA Nova SA (NVA.WA) is 6.05%.

	Range	Selected
Cost of equity	12.80% - 17.70%	15.25%
Tax rate	19.20% - 20.20%	19.70%
Cost of debt	5.50% - 6.60%	6.05%
WACC	7.1% - 9.2%	8.1%

WACC

NVA.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	1.14	1.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.80%	17.70%

Tax rate	19.20%	20.20%
Debt/Equity ratio	2.14	2.14
Cost of debt	5.50%	6.60%

After-tax WACC	7.1%	9.2%


Selected WACC	8.1%

NVA.WA'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 NVA.WA:

cost_of_equity (15.25%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.14) + 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.