NVG.WA WACC - Weighted Average Cost of Capital

The WACC of Novavis Group SA (NVG.WA) is 14.7%.

The Cost of Equity of Novavis Group SA (NVG.WA) is 11.55%.

The Cost of Debt of Novavis Group SA (NVG.WA) is 98.05%.

	Range	Selected
Cost of equity	10.10% - 13.00%	11.55%
Tax rate	26.10% - 30.70%	28.40%
Cost of debt	7.00% - 189.10%	98.05%
WACC	9.8% - 19.5%	14.7%

WACC

NVG.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.72	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	13.00%

Tax rate	26.10%	30.70%
Debt/Equity ratio	0.06	0.06
Cost of debt	7.00%	189.10%

After-tax WACC	9.8%	19.5%


Selected WACC	14.7%

NVG.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 NVG.WA:

cost_of_equity (11.55%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.72) + 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.