PEG.L WACC - Weighted Average Cost of Capital
The WACC of Petards Group PLC (PEG.L) is 8.8%.
| Range | Selected | |
| Cost of equity | 7.5% - 10.7% | 9.1% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 7.0% - 9.9% | 8.45% |
| WACC | 7.2% - 10.3% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.58 | 0.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 10.7% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 7.0% | 9.9% |
| After-tax WACC | 7.2% | 10.3% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PEG.L | Petards Group PLC | 0.52 | 0.75 | 0.53 |
| ALWED.PA | Wedia SA | 0.21 | -0.18 | -0.15 |
| COH.PA | Coheris SA | 0.11 | 0.6 | 0.55 |
| GLOG.BR | Global Graphics PLC | 0.03 | 0.74 | 0.72 |
| HEEROS.HE | Heeros Oyj | 0.02 | -0.55 | -0.54 |
| KRONT.IS | Kron Telekomunikasyon Hizmetleri AS | 0.04 | 1.4 | 1.35 |
| LSS.PA | Lectra SA | 0.14 | 0.71 | 0.63 |
| MIRA.L | Mirada PLC | 24.04 | 0.14 | 0.01 |
| O5H.DE | Openlimit Holding AG | 15.42 | 0.25 | 0.02 |
| QTX.L | Quartix Holdings PLC | 0 | 1.12 | 1.11 |
| Low | High | |
| Unlevered beta | 0.32 | 0.58 |
| Relevered beta | 0.37 | 0.73 |
| Adjusted relevered beta | 0.58 | 0.82 |
PEG.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 PEG.L:
cost_of_equity (9.10%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.58) + 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.