The WACC of Peach Property Group AG (PEAN.SW) is 6.7%.
Range | Selected | |
Cost of equity | 4.6% - 8.0% | 6.3% |
Tax rate | 16.4% - 19.2% | 17.8% |
Cost of debt | 4.0% - 12.8% | 8.4% |
WACC | 3.6% - 9.9% | 6.7% |
Category | Low | High |
Long-term bond rate | 1.0% | 1.5% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.7 | 0.99 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.6% | 8.0% |
Tax rate | 16.4% | 19.2% |
Debt/Equity ratio | 4.29 | 4.29 |
Cost of debt | 4.0% | 12.8% |
After-tax WACC | 3.6% | 9.9% |
Selected WACC | 6.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
PEAN.SW | Peach Property Group AG | 4.29 | 0.59 | 0.13 |
DVL.WA | Develia SA | 0.29 | 0.79 | 0.64 |
GPG.ST | Genova Property Group AB | 3.41 | 0.42 | 0.11 |
IREN.SW | Investis Holding SA | 0.34 | 0.12 | 0.09 |
ISUR.MC | Inmobiliaria del Sur SA | 1.06 | 0.38 | 0.2 |
MLG.WA | MLP Group SA | 1.56 | 0.69 | 0.3 |
SFPN.SW | SF Urban Properties AG | 1.11 | 0.03 | 0.02 |
UAI.L | U and I Group PLC | 0.94 | 1.54 | 0.87 |
UBS.VI | UBM Development AG | 4.99 | 1.22 | 0.24 |
ZUGN.SW | Zug Estates Holding AG | 0.68 | 0.15 | 0.1 |
Low | High | |
Unlevered beta | 0.12 | 0.22 |
Relevered beta | 0.55 | 0.99 |
Adjusted relevered beta | 0.7 | 0.99 |
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 PEAN.SW:
cost_of_equity (6.30%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.7) + 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.