IL0A.IR WACC - Weighted Average Cost of Capital
The WACC of Permanent TSB Group Holdings PLC (IL0A.IR) is 8.6%.
| Range | Selected | |
| Cost of equity | 10.2% - 13.4% | 11.8% |
| Tax rate | 4.3% - 7.1% | 5.7% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.8% - 9.5% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 6.4% | 7.4% |
| Adjusted beta | 1.13 | 1.28 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.2% | 13.4% |
| Tax rate | 4.3% | 7.1% |
| Debt/Equity ratio | 0.81 | 0.81 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.8% | 9.5% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IL0A.IR | Permanent TSB Group Holdings PLC | 0.81 | 0.98 | 0.55 |
| BGEO.L | Bank of Georgia Group PLC | 0.89 | 1.25 | 0.68 |
| BHW.WA | Bank Handlowy w Warszawie SA | 0.08 | 0.92 | 0.86 |
| CVAL.MI | Banca Piccolo Credito Valtellinese SpA | 1.52 | 1.9 | 0.78 |
| GNB.WA | Getin Noble Bank SA | 4.6 | 1.55 | 0.29 |
| KOMP.OL | Komplett Bank ASA | 0.08 | 1.88 | 1.74 |
| NLB.L | Nova Ljubljanska Banka dd Ljubljana | 0.33 | 1.09 | 0.83 |
| PCZ.DE | ProCredit Holding AG & Co KGaA | 0.61 | 0.96 | 0.6 |
| SOR.OL | Sparebanken Sor | 9.05 | 0.59 | 0.06 |
| TBCG.L | TBC Bank Group PLC | 0.99 | 1.62 | 0.83 |
| Low | High | |
| Unlevered beta | 0.65 | 0.8 |
| Relevered beta | 1.19 | 1.42 |
| Adjusted relevered beta | 1.13 | 1.28 |
IL0A.IR'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 IL0A.IR:
cost_of_equity (11.80%) = risk_free_rate (3.25%) + equity_risk_premium (6.90%) * adjusted_beta (1.13) + 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.