PEBB.L
Pebble Group PLC
Price:  
38.60 
GBP
Volume:  
28,960,024.00
United Kingdom | Media
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PEBB.L WACC - Weighted Average Cost of Capital

The WACC of Pebble Group PLC (PEBB.L) is 9.0%.

The Cost of Equity of Pebble Group PLC (PEBB.L) is 9.60%.
The Cost of Debt of Pebble Group PLC (PEBB.L) is 5.45%.

Range Selected
Cost of equity 8.40% - 10.80% 9.60%
Tax rate 21.20% - 21.30% 21.25%
Cost of debt 4.60% - 6.30% 5.45%
WACC 7.8% - 10.2% 9.0%
WACC

PEBB.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.73 0.84
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 10.80%
Tax rate 21.20% 21.30%
Debt/Equity ratio 0.13 0.13
Cost of debt 4.60% 6.30%
After-tax WACC 7.8% 10.2%
Selected WACC 9.0%

PEBB.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 PEBB.L:

cost_of_equity (9.60%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.73) + 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.