PEN.TA WACC - Weighted Average Cost of Capital

The WACC of Peninsula Group Ltd (PEN.TA) is 7.9%.

The Cost of Equity of Peninsula Group Ltd (PEN.TA) is 14.05%.

The Cost of Debt of Peninsula Group Ltd (PEN.TA) is 7.05%.

	Range	Selected
Cost of equity	10.40% - 17.70%	14.05%
Tax rate	25.10% - 26.90%	26.00%
Cost of debt	4.00% - 10.10%	7.05%
WACC	5.3% - 10.6%	7.9%

WACC

PEN.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.9	1.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	17.70%

Tax rate	25.10%	26.90%
Debt/Equity ratio	2.23	2.23
Cost of debt	4.00%	10.10%

After-tax WACC	5.3%	10.6%


Selected WACC	7.9%

PEN.TA'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.TA:

cost_of_equity (14.05%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.9) + 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.