PNS.L
Panther Securities P L C
Price:  
290 
GBP
Volume:  
6,101
United Kingdom | Real Estate Management & Development

PNS.L WACC - Weighted Average Cost of Capital

The WACC of Panther Securities P L C (PNS.L) is 6.0%.

The Cost of Equity of Panther Securities P L C (PNS.L) is 7.1%.
The Cost of Debt of Panther Securities P L C (PNS.L) is 6.55%.

RangeSelected
Cost of equity6.2% - 8.0%7.1%
Tax rate17.8% - 20.9%19.35%
Cost of debt5.5% - 7.6%6.55%
WACC5.2% - 6.9%6.0%
WACC

PNS.L WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.360.44
Additional risk adjustments0.0%0.5%
Cost of equity6.2%8.0%
Tax rate17.8%20.9%
Debt/Equity ratio
1.41.4
Cost of debt5.5%7.6%
After-tax WACC5.2%6.9%
Selected WACC6.0%

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 (7.10%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.36) + 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.