NVA.WA WACC - Weighted Average Cost of Capital

The WACC of PA Nova SA (NVA.WA) is 8.0%.

The Cost of Equity of PA Nova SA (NVA.WA) is 14.85%.

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

	Range	Selected
Cost of equity	12.60% - 17.10%	14.85%
Tax rate	19.20% - 20.20%	19.70%
Cost of debt	5.50% - 6.60%	6.05%
WACC	7.0% - 9.0%	8.0%

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	1.12	1.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.60%	17.10%

Tax rate	19.20%	20.20%
Debt/Equity ratio	2.15	2.15
Cost of debt	5.50%	6.60%

After-tax WACC	7.0%	9.0%


Selected WACC	8.0%

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 (14.85%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.12) + 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.