PIN.L WACC - Weighted Average Cost of Capital
The WACC of Pantheon International PLC (PIN.L) is 9.6%.
| Range | Selected | |
| Cost of equity | 9.5% - 11.7% | 10.6% |
| Tax rate | 2.0% - 2.9% | 2.45% |
| Cost of debt | 4.0% - 4.9% | 4.45% |
| WACC | 8.6% - 10.6% | 9.6% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.92 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.5% | 11.7% |
| Tax rate | 2.0% | 2.9% |
| Debt/Equity ratio | 0.19 | 0.19 |
| Cost of debt | 4.0% | 4.9% |
| After-tax WACC | 8.6% | 10.6% |
| Selected WACC | 9.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PIN.L | Pantheon International PLC | 0.19 | 1.11 | 0.94 |
| BBGI.L | BBGI SICAV SA | 0 | 0.2 | 0.2 |
| BGFD.L | Baillie Gifford Japan Trust PLC | 0.24 | 0.91 | 0.74 |
| BNKR.L | Bankers Investment Trust PLC | 0.11 | 0.79 | 0.71 |
| HVPE.L | HarbourVest Global Private Equity Ltd | 0.12 | 0.85 | 0.76 |
| IEM.L | Impax Environmental Markets PLC | 0.11 | 0.92 | 0.83 |
| MYI.L | Murray International Trust PLC | 0.07 | 1.07 | 1 |
| SDP.L | Schroder Asiapacific Fund PLC | 0.02 | 0.77 | 0.76 |
| SONG.L | Hipgnosis Songs Fund Ltd | 0.49 | 0.39 | 0.26 |
| WTAN.L | Witan Investment Trust PLC | 0.15 | 1 | 0.88 |
| Low | High | |
| Unlevered beta | 0.75 | 0.79 |
| Relevered beta | 0.88 | 0.93 |
| Adjusted relevered beta | 0.92 | 0.95 |
PIN.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 PIN.L:
cost_of_equity (10.60%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.92) + 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.