PMVM.TA WACC - Weighted Average Cost of Capital

The WACC of Pomvom Ltd (PMVM.TA) is 12.0%.

The Cost of Equity of Pomvom Ltd (PMVM.TA) is 11.75%.

The Cost of Debt of Pomvom Ltd (PMVM.TA) is 12.90%.

	Range	Selected
Cost of equity	10.40% - 13.10%	11.75%
Tax rate	0.70% - 1.10%	0.90%
Cost of debt	7.00% - 18.80%	12.90%
WACC	9.4% - 14.7%	12.0%

WACC

PMVM.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.9	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	13.10%

Tax rate	0.70%	1.10%
Debt/Equity ratio	0.4	0.4
Cost of debt	7.00%	18.80%

After-tax WACC	9.4%	14.7%


Selected WACC	12.0%

PMVM.TA'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 PMVM.TA:

cost_of_equity (11.75%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.9) + 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.