PRS.MC WACC - Weighted Average Cost of Capital
The WACC of Promotora de Informaciones SA (PRS.MC) is 7.0%.
| Range | Selected | |
| Cost of equity | 10.9% - 14.1% | 12.5% |
| Tax rate | 25.0% - 25.0% | 25% |
| Cost of debt | 4.0% - 6.0% | 5% |
| WACC | 6.0% - 8.1% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 1.05 | 1.19 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.9% | 14.1% |
| Tax rate | 25.0% | 25.0% |
| Debt/Equity ratio | 1.65 | 1.65 |
| Cost of debt | 4.0% | 6.0% |
| After-tax WACC | 6.0% | 8.1% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PRS.MC | Promotora de Informaciones SA | 1.65 | 0.42 | 0.19 |
| BMY.L | Bloomsbury Publishing PLC | 0.02 | 0.72 | 0.71 |
| DMGT.L | Daily Mail and General Trust P L C | 0.11 | 0.52 | 0.48 |
| ENRO.ST | Eniro AB | 0.08 | 0.77 | 0.73 |
| ERM.L | Euromoney Institutional Investor PLC | 0.04 | 0.99 | 0.96 |
| FUTR.L | Future PLC | 0.48 | 0.84 | 0.62 |
| MN.MI | Arnoldo Mondadori Editore SpA | 0.45 | 0.58 | 0.44 |
| RCH.L | Reach PLC | 0.26 | 0.56 | 0.47 |
| RCS.MI | Rizzoli Corriere della Sera Mediagroup SpA | 0.36 | 0.67 | 0.53 |
| TXGN.SW | TX Group AG | 0.11 | 0.52 | 0.48 |
| Low | High | |
| Unlevered beta | 0.48 | 0.57 |
| Relevered beta | 1.07 | 1.28 |
| Adjusted relevered beta | 1.05 | 1.19 |
PRS.MC'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 PRS.MC:
cost_of_equity (12.50%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (1.05) + 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.