NVT.WA
Novita SA
Price:  
96.00 
PLN
Volume:  
251.00
Poland | Textiles, Apparel & Luxury Goods
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

NVT.WA WACC - Weighted Average Cost of Capital

The WACC of Novita SA (NVT.WA) is 11.6%.

The Cost of Equity of Novita SA (NVT.WA) is 11.75%.
The Cost of Debt of Novita SA (NVT.WA) is 5.05%.

Range Selected
Cost of equity 10.70% - 12.80% 11.75%
Tax rate 17.10% - 17.30% 17.20%
Cost of debt 4.00% - 6.10% 5.05%
WACC 10.5% - 12.6% 11.6%
WACC

NVT.WA WACC calculation

Category Low High
Long-term bond rate 5.5% 6.0%
Equity market risk premium 6.3% 7.3%
Adjusted beta 0.81 0.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.70% 12.80%
Tax rate 17.10% 17.30%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.00% 6.10%
After-tax WACC 10.5% 12.6%
Selected WACC 11.6%

NVT.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 NVT.WA:

cost_of_equity (11.75%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.81) + 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.