PNS.L WACC - Weighted Average Cost of Capital
The WACC of Panther Securities P L C (PNS.L) is 6.2%.
| Range | Selected | |
| Cost of equity | 6.5% - 8.7% | 7.6% |
| Tax rate | 17.8% - 20.9% | 19.35% |
| Cost of debt | 5.5% - 7.6% | 6.55% |
| WACC | 5.3% - 7.1% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.42 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 8.7% |
| Tax rate | 17.8% | 20.9% |
| Debt/Equity ratio | 1.4 | 1.4 |
| Cost of debt | 5.5% | 7.6% |
| After-tax WACC | 5.3% | 7.1% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PNS.L | Panther Securities P L C | 1.4 | 0.07 | 0.04 |
| ACCB.BR | Accentis NV | 0.35 | 0.24 | 0.19 |
| ARON.SW | Arundel AG | 87.57 | 2.06 | 0.03 |
| CRC.L | Circle Property PLC | 20.91 | -1.98 | -0.11 |
| FED.CO | Fast Ejendom Danmark A/S | 2.1 | 0.22 | 0.08 |
| INR1L.VS | INVL Baltic Real Estate SUTNTIB | 0.78 | 0.81 | 0.5 |
| INVEST.HE | Investors House Oyj | 1.16 | 0.4 | 0.21 |
| RCMN.DE | RCM Beteiligungs AG | 1.37 | 0.07 | 0.03 |
| RLE.L | Real Estate Investors PLC | 0.7 | 0.27 | 0.17 |
| SMWN.DE | SM Wirtschaftsberatungs AG | 0.06 | 0.12 | 0.12 |
| Low | High | |
| Unlevered beta | 0.06 | 0.14 |
| Relevered beta | 0.13 | 0.28 |
| Adjusted relevered beta | 0.42 | 0.52 |
PNS.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 PNS.L:
cost_of_equity (7.60%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.42) + 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.