PIER.L WACC - Weighted Average Cost of Capital
The WACC of Brighton Pier Group PLC (PIER.L) is 11.6%.
| Range | Selected | |
| Cost of equity | 5.9% - 10.9% | 8.4% |
| Tax rate | 11.5% - 15.4% | 13.45% |
| Cost of debt | 4.0% - 24.0% | 14% |
| WACC | 3.8% - 19.4% | 11.6% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.32 | 0.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.9% | 10.9% |
| Tax rate | 11.5% | 15.4% |
| Debt/Equity ratio | 9.21 | 9.21 |
| Cost of debt | 4.0% | 24.0% |
| After-tax WACC | 3.8% | 19.4% |
| Selected WACC | 11.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PIER.L | Brighton Pier Group PLC | 9.21 | 1.7 | 0.19 |
| ALDBL.PA | Bernard Loiseau SA | 1.1 | -0.12 | -0.06 |
| COM.L | Comptoir Group PLC | 5.42 | 0.61 | 0.11 |
| DPEU.L | DP Eurasia NV | 0.15 | -0.12 | -0.11 |
| DPP.L | DP Poland PLC | 0.18 | 0.2 | 0.17 |
| HVT.L | Heavitree Brewery PLC | 0.29 | 0.09 | 0.07 |
| MEX.WA | Mex Polska SA | 1.81 | 0.46 | 0.18 |
| SFS.WA | Sfinks Polska SA | 8.12 | -0.12 | -0.02 |
| SKN.WA | Sakana SA | 0.03 | -0.14 | -0.14 |
| TAST.L | Tasty PLC | 29.24 | 0.16 | 0.01 |
| Low | High | |
| Unlevered beta | 0 | 0.09 |
| Relevered beta | -0.01 | 0.78 |
| Adjusted relevered beta | 0.32 | 0.85 |
PIER.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 PIER.L:
cost_of_equity (8.40%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.32) + 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.