PCIP.L
PCI- PAL PLC
Price:  
51.5 
GBP
Volume:  
236,895
United Kingdom | IT Services

PCIP.L WACC - Weighted Average Cost of Capital

The WACC of PCI- PAL PLC (PCIP.L) is 7.7%.

The Cost of Equity of PCI- PAL PLC (PCIP.L) is 7.65%.
The Cost of Debt of PCI- PAL PLC (PCIP.L) is 24.8%.

RangeSelected
Cost of equity6.7% - 8.6%7.65%
Tax rate4.5% - 5.2%4.85%
Cost of debt4.6% - 45.0%24.8%
WACC6.7% - 8.6%7.7%
WACC

PCIP.L WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.450.52
Additional risk adjustments0.0%0.5%
Cost of equity6.7%8.6%
Tax rate4.5%5.2%
Debt/Equity ratio
00
Cost of debt4.6%45.0%
After-tax WACC6.7%8.6%
Selected WACC7.7%

PCIP.L'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 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.