PGM.WA WACC - Weighted Average Cost of Capital
The WACC of PMPG Polskie Media SA (PGM.WA) is 8.6%.
| Range | Selected | |
| Cost of equity | 7.7% - 9.7% | 8.7% |
| Tax rate | 6.2% - 9.2% | 7.7% |
| Cost of debt | 7.0% - 7.6% | 7.3% |
| WACC | 7.6% - 9.5% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.35 | 0.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 9.7% |
| Tax rate | 6.2% | 9.2% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 7.0% | 7.6% |
| After-tax WACC | 7.6% | 9.5% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PGM.WA | PMPG Polskie Media SA | 0.07 | 0.23 | 0.22 |
| BONH.L | Bonhill Group PLC | 4.27 | -1.65 | -0.33 |
| CLE.MI | Class Editori SpA | 0.9 | -1.23 | -0.67 |
| DOBUR.IS | Dogan Burda Dergi Yayincilik ve Pazarlama AS | 0.01 | 1.4 | 1.38 |
| GAMB.MI | Gambero Rosso SpA | 4.11 | 0.06 | 0.01 |
| LIVAN.AT | Livanis Publications SA | 16.97 | -0.01 | 0 |
| MZA.WA | Muza SA | 0.07 | 0.27 | 0.25 |
| PUMU.HE | PunaMusta Media Oyj | 3.18 | 0.34 | 0.09 |
| SBV.SG | Schwabenverlag AG | 0.13 | 1.62 | 1.44 |
| SEIF.MI | Societa Editoriale Il Fatto SpA | 0.48 | 0.04 | 0.03 |
| Low | High | |
| Unlevered beta | 0.02 | 0.14 |
| Relevered beta | 0.03 | 0.15 |
| Adjusted relevered beta | 0.35 | 0.43 |
PGM.WA'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 PGM.WA:
cost_of_equity (8.70%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.35) + 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.