532355.BO WACC - Weighted Average Cost of Capital

The WACC of Picturehouse Media Ltd (532355.BO) is 9.4%.

The Cost of Equity of Picturehouse Media Ltd (532355.BO) is 33.80%.

The Cost of Debt of Picturehouse Media Ltd (532355.BO) is 4.25%.

	Range	Selected
Cost of equity	30.60% - 37.00%	33.80%
Tax rate	-% - 0.10%	0.05%
Cost of debt	4.00% - 4.50%	4.25%
WACC	8.6% - 10.1%	9.4%

WACC

532355.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	2.85	3.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	30.60%	37.00%

Tax rate	-%	0.10%
Debt/Equity ratio	4.76	4.76
Cost of debt	4.00%	4.50%

After-tax WACC	8.6%	10.1%


Selected WACC	9.4%

532355.BO'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 532355.BO:

cost_of_equity (33.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (2.85) + 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.