PBFS
Pioneer Bancorp Inc
Price:  
11.50 
USD
Volume:  
9,368.00
United States | Thrifts & Mortgage Finance
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PBFS WACC - Weighted Average Cost of Capital

The WACC of Pioneer Bancorp Inc (PBFS) is 7.3%.

The Cost of Equity of Pioneer Bancorp Inc (PBFS) is 7.25%.
The Cost of Debt of Pioneer Bancorp Inc (PBFS) is 5.00%.

Range Selected
Cost of equity 6.40% - 8.10% 7.25%
Tax rate 22.10% - 22.80% 22.45%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.4% - 8.1% 7.3%
WACC

PBFS WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.56 0.58
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 8.10%
Tax rate 22.10% 22.80%
Debt/Equity ratio 0 0
Cost of debt 5.00% 5.00%
After-tax WACC 6.4% 8.1%
Selected WACC 7.3%

PBFS'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 PBFS:

cost_of_equity (7.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.56) + 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.