PGOO.L
Proven Growth and Income Vct PLC
Price:  
48.1 
GBP
Volume:  
12,244
United Kingdom | Finance and Insurance

PGOO.L WACC - Weighted Average Cost of Capital

The WACC of Proven Growth and Income Vct PLC (PGOO.L) is 9.6%.

The Cost of Equity of Proven Growth and Income Vct PLC (PGOO.L) is 15.1%.
The Cost of Debt of Proven Growth and Income Vct PLC (PGOO.L) is 5%.

RangeSelected
Cost of equity13.7% - 16.5%15.1%
Tax rate19.0% - 19.0%19%
Cost of debt5.0% - 5.0%5%
WACC8.9% - 10.3%9.6%
WACC

PGOO.L WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium6.0%7.0%
Adjusted beta1.621.65
Additional risk adjustments0.0%0.5%
Cost of equity13.7%16.5%
Tax rate19.0%19.0%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC8.9%10.3%
Selected WACC9.6%

PGOO.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 PGOO.L:

cost_of_equity (15.10%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.62) + 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.