PPH.NZ
Pushpay Holdings Ltd
Price:  
1.41 
NZD
Volume:  
185,962.00
New Zealand | IT Services
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PPH.NZ WACC - Weighted Average Cost of Capital

The WACC of Pushpay Holdings Ltd (PPH.NZ) is 9.8%.

The Cost of Equity of Pushpay Holdings Ltd (PPH.NZ) is 10.15%.
The Cost of Debt of Pushpay Holdings Ltd (PPH.NZ) is 5.00%.

Range Selected
Cost of equity 8.40% - 11.90% 10.15%
Tax rate 25.30% - 27.60% 26.45%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.1% - 11.4% 9.8%
WACC

PPH.NZ WACC calculation

Category Low High
Long-term bond rate 4.3% 4.8%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.8 1.08
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 11.90%
Tax rate 25.30% 27.60%
Debt/Equity ratio 0.06 0.06
Cost of debt 5.00% 5.00%
After-tax WACC 8.1% 11.4%
Selected WACC 9.8%

PPH.NZ'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 PPH.NZ:

cost_of_equity (10.15%) = risk_free_rate (4.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.8) + 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.