PNGA.CN WACC - Weighted Average Cost of Capital

The WACC of Pangea Natural Foods Inc (PNGA.CN) is 16.8%.

The Cost of Equity of Pangea Natural Foods Inc (PNGA.CN) is 16.90%.

The Cost of Debt of Pangea Natural Foods Inc (PNGA.CN) is 5.00%.

	Range	Selected
Cost of equity	15.20% - 18.60%	16.90%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	5.00% - 5.00%	5.00%
WACC	15.2% - 18.5%	16.8%

WACC

PNGA.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	2.36	2.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.20%	18.60%

Tax rate	25.90%	26.50%
Debt/Equity ratio	0	0
Cost of debt	5.00%	5.00%

After-tax WACC	15.2%	18.5%


Selected WACC	16.8%

PNGA.CN'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 PNGA.CN:

cost_of_equity (16.90%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (2.36) + 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.