PODP.L WACC - Weighted Average Cost of Capital

The WACC of Pod Point Group Holdings PLC (PODP.L) is 10.6%.

The Cost of Equity of Pod Point Group Holdings PLC (PODP.L) is 11.85%.

The Cost of Debt of Pod Point Group Holdings PLC (PODP.L) is 7.35%.

	Range	Selected
Cost of equity	9.60% - 14.10%	11.85%
Tax rate	0.20% - 0.30%	0.25%
Cost of debt	7.00% - 7.70%	7.35%
WACC	8.9% - 12.4%	10.6%

WACC

PODP.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.93	1.3

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	14.10%

Tax rate	0.20%	0.30%
Debt/Equity ratio	0.37	0.37
Cost of debt	7.00%	7.70%

After-tax WACC	8.9%	12.4%


Selected WACC	10.6%

PODP.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 PODP.L:

cost_of_equity (11.85%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.93) + 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.