PMV.AX WACC - Weighted Average Cost of Capital
The WACC of Premier Investments Ltd (PMV.AX) is 7.6%.
| Range | Selected | |
| Cost of equity | 6.4% - 9.8% | 8.1% |
| Tax rate | 28.0% - 28.7% | 28.35% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.0% - 9.2% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.47 | 0.79 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 9.8% |
| Tax rate | 28.0% | 28.7% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.0% | 9.2% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PMV.AX | Premier Investments Ltd | 0.15 | 1.37 | 1.24 |
| 2726.T | PAL Group Holdings Co Ltd | 0.04 | -0.5 | -0.48 |
| 330.HK | Esprit Holdings Ltd | 7.05 | 0.56 | 0.09 |
| 3709.HK | EEKA Fashion Holdings Ltd | 0.26 | 0.28 | 0.24 |
| 4240.SR | Fawaz Abdulaziz Alhokair Company SJSC | 1.45 | 1.55 | 0.76 |
| 7545.T | Nishimatsuya Chain Co Ltd | 0.01 | 0.09 | 0.09 |
| 8185.T | Chiyoda Co Ltd | 0.02 | 0.67 | 0.66 |
| AX1.AX | Accent Group Ltd | 0.65 | 1.06 | 0.72 |
| CCX.AX | City Chic Collective Ltd | 1.75 | 1.34 | 0.59 |
| MOZ.AX | Mosaic Brands Ltd | 17.95 | 1.62 | 0.12 |
| Low | High | |
| Unlevered beta | 0.19 | 0.62 |
| Relevered beta | 0.21 | 0.69 |
| Adjusted relevered beta | 0.47 | 0.79 |
PMV.AX'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 PMV.AX:
cost_of_equity (8.10%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.47) + 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.