PBH.AX WACC - Weighted Average Cost of Capital
The WACC of Pointsbet Holdings Ltd (PBH.AX) is 6.7%.
| Range | Selected | |
| Cost of equity | 5.8% - 7.5% | 6.65% |
| Tax rate | 0.0% - 0.0% | 0% |
| Cost of debt | 4.0% - 4.6% | 4.3% |
| WACC | 5.8% - 7.5% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.36 | 0.41 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 7.5% |
| Tax rate | 0.0% | 0.0% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 4.6% |
| After-tax WACC | 5.8% | 7.5% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PBH.AX | Pointsbet Holdings Ltd | 0.01 | -0.02 | -0.02 |
| 1245.HK | Niraku GC Holdings Inc | 9.03 | 0.13 | 0.01 |
| 6889.HK | Dynam Japan Holdings Co Ltd | 4.52 | 0.33 | 0.06 |
| 959.HK | Century Entertainment International Holdings Ltd | 2.31 | -0.69 | -0.21 |
| AQS.AX | Aquis Entertainment Ltd | 0.78 | 0.26 | 0.14 |
| BET.AX | Betmakers Technology Group Ltd | 0.03 | 0.89 | 0.86 |
| JIN.AX | Jumbo Interactive Ltd | 0 | 0.82 | 0.81 |
| RCT.AX | Reef Casino Trust | 0 | -0.14 | -0.14 |
| SGR.AX | Star Entertainment Group Ltd | 0.96 | 0.2 | 0.1 |
| TAH.AX | Tabcorp Holdings Ltd | 0.72 | 1.01 | 0.59 |
| Low | High | |
| Unlevered beta | 0.04 | 0.12 |
| Relevered beta | 0.04 | 0.12 |
| Adjusted relevered beta | 0.36 | 0.41 |
PBH.AX'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 PBH.AX:
cost_of_equity (6.65%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.36) + 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.