NVD.BK WACC - Weighted Average Cost of Capital

The WACC of Nirvana Daii PCL (NVD.BK) is 9.5%.

The Cost of Equity of Nirvana Daii PCL (NVD.BK) is 7.25%.

The Cost of Debt of Nirvana Daii PCL (NVD.BK) is 14.50%.

	Range	Selected
Cost of equity	6.20% - 8.30%	7.25%
Tax rate	28.60% - 31.20%	29.90%
Cost of debt	6.40% - 22.60%	14.50%
WACC	4.9% - 14.2%	9.5%

WACC

NVD.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.5	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	8.30%

Tax rate	28.60%	31.20%
Debt/Equity ratio	4.45	4.45
Cost of debt	6.40%	22.60%

After-tax WACC	4.9%	14.2%


Selected WACC	9.5%

NVD.BK'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 NVD.BK:

cost_of_equity (7.25%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.5) + 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.