The WACC of PCI- PAL PLC (PCIP.L) is 7.7%.
Range | Selected | |
Cost of equity | 6.7% - 8.6% | 7.65% |
Tax rate | 4.5% - 5.2% | 4.85% |
Cost of debt | 4.6% - 45.0% | 24.8% |
WACC | 6.7% - 8.6% | 7.7% |
Category | Low | High |
Long-term bond rate | 4.0% | 4.5% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.45 | 0.52 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.7% | 8.6% |
Tax rate | 4.5% | 5.2% |
Debt/Equity ratio | 0 | 0 |
Cost of debt | 4.6% | 45.0% |
After-tax WACC | 6.7% | 8.6% |
Selected WACC | 7.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
PCIP.L | PCI- PAL PLC | 0 | -0.07 | -0.07 |
ALBDM.PA | BD Multi Media SA | 0.01 | 0.44 | 0.44 |
ALHIT.PA | Hitechpros SA | 0.04 | 0.19 | 0.18 |
BEST.MI | Be Shaping the Future SpA | 0.16 | 0.74 | 0.64 |
BINERO.ST | Binero Group AB (publ) | 0.1 | 0.35 | 0.32 |
IBPO.L | iEnergizer Ltd | 1.07 | 0.52 | 0.26 |
NC5A.DE | NorCom Information Technology AG | 0.18 | -0.22 | -0.19 |
SBE.WA | Softblue SA | 0.01 | 0.17 | 0.17 |
SCGL.L | Sealand Capital Galaxy Ltd | 0.01 | -0.64 | -0.64 |
UNG.L | Universe Group PLC | 0.22 | 1.27 | 1.05 |
Low | High | |
Unlevered beta | 0.18 | 0.28 |
Relevered beta | 0.18 | 0.28 |
Adjusted relevered beta | 0.45 | 0.52 |
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 PCIP.L:
cost_of_equity (7.65%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.45) + 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.