PKG1T.TL
Pro Kapital Grupp AS
Price:  
1.00 
EUR
Volume:  
83.00
Estonia | Real Estate Management & Development
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PKG1T.TL WACC - Weighted Average Cost of Capital

The WACC of Pro Kapital Grupp AS (PKG1T.TL) is 12.6%.

The Cost of Equity of Pro Kapital Grupp AS (PKG1T.TL) is 9.25%.
The Cost of Debt of Pro Kapital Grupp AS (PKG1T.TL) is 16.90%.

Range Selected
Cost of equity 7.90% - 10.60% 9.25%
Tax rate 0.10% - 2.20% 1.15%
Cost of debt 7.90% - 25.90% 16.90%
WACC 7.9% - 17.3% 12.6%
WACC

PKG1T.TL WACC calculation

Category Low High
Long-term bond rate 5.9% 6.4%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.33 0.52
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.90% 10.60%
Tax rate 0.10% 2.20%
Debt/Equity ratio 0.83 0.83
Cost of debt 7.90% 25.90%
After-tax WACC 7.9% 17.3%
Selected WACC 12.6%

PKG1T.TL'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 PKG1T.TL:

cost_of_equity (9.25%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (0.33) + 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.