NVVE WACC - Weighted Average Cost of Capital

The WACC of Nuvve Holding Corp (NVVE) is 197.5%.

The Cost of Equity of Nuvve Holding Corp (NVVE) is 9.20%.

The Cost of Debt of Nuvve Holding Corp (NVVE) is 476.70%.

	Range	Selected
Cost of equity	6.90% - 11.50%	9.20%
Tax rate	-% - -%	-%
Cost of debt	7.00% - 946.40%	476.70%
WACC	6.9% - 388.1%	197.5%

WACC

NVVE WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	0.65	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	11.50%

Tax rate	-%	-%
Debt/Equity ratio	0.67	0.67
Cost of debt	7.00%	946.40%

After-tax WACC	6.9%	388.1%


Selected WACC	197.5%

NVVE'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 NVVE:

cost_of_equity (9.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.65) + 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.