PEN.L
Pennant International Group PLC
Price:  
27.50 
GBP
Volume:  
159,439.00
United Kingdom | Aerospace & Defense
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PEN.L WACC - Weighted Average Cost of Capital

The WACC of Pennant International Group PLC (PEN.L) is 7.5%.

The Cost of Equity of Pennant International Group PLC (PEN.L) is 7.95%.
The Cost of Debt of Pennant International Group PLC (PEN.L) is 8.70%.

Range Selected
Cost of equity 7.00% - 8.90% 7.95%
Tax rate 26.90% - 34.40% 30.65%
Cost of debt 7.00% - 10.40% 8.70%
WACC 6.6% - 8.4% 7.5%
WACC

PEN.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.51 0.56
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 8.90%
Tax rate 26.90% 34.40%
Debt/Equity ratio 0.31 0.31
Cost of debt 7.00% 10.40%
After-tax WACC 6.6% 8.4%
Selected WACC 7.5%

PEN.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 PEN.L:

cost_of_equity (7.95%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.51) + 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.