PRESSMN.NS WACC - Weighted Average Cost of Capital
The WACC of Pressman Advertising Ltd (PRESSMN.NS) is 8.4%.
| Range | Selected | |
| Cost of equity | 11.3% - 14.7% | 13% |
| Tax rate | 22.8% - 23.3% | 23.05% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.6% - 9.3% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.54 | 0.73 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.3% | 14.7% |
| Tax rate | 22.8% | 23.3% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.6% | 9.3% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PRESSMN.NS | Pressman Advertising Ltd | 0.84 | -1.39 | -0.84 |
| 539229.BO | Majestic Research Services and Solutions Ltd | 2.97 | 1.47 | 0.45 |
| 8091.HK | OOH Holdings Ltd | 1.68 | 0.62 | 0.27 |
| 8112.HK | Cornerstone Financial Holdings Ltd | 0.3 | 0.28 | 0.22 |
| 8401.HK | Stream Ideas Group Ltd | 0 | -0.62 | -0.62 |
| AMEDIA.KL | Asia Media Group Bhd | 0.04 | -1.26 | -1.21 |
| FORU.JK | Fortune Indonesia Tbk PT | 0 | 1.31 | 1.31 |
| MXO.AX | Motio Ltd | 0.28 | 1.17 | 0.96 |
| SAMBHAAV.NS | Sambhaav Media Ltd | 0.09 | 0.11 | 0.1 |
| SJC.KL | Seni Jaya Corporation Bhd | 0.4 | 1.27 | 0.97 |
| Low | High | |
| Unlevered beta | 0.18 | 0.34 |
| Relevered beta | 0.31 | 0.6 |
| Adjusted relevered beta | 0.54 | 0.73 |
PRESSMN.NS'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 PRESSMN.NS:
cost_of_equity (13.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.54) + 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.