The WACC of Premier Exhibitions Inc (PRXIQ) is 6.9%.
Range | Selected | |
Cost of equity | 5.4% - 505864.8% | 252935.1% |
Tax rate | 2.7% - 7.0% | 4.85% |
Cost of debt | 7.0% - 7.0% | 7% |
WACC | 6.8% - 7.0% | 6.9% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | -127.06 | 90227.48 |
Additional risk adjustments | 586.0% | 586.5% |
Cost of equity | 5.4% | 505864.8% |
Tax rate | 2.7% | 7.0% |
Debt/Equity ratio | 1130769.23 | 1130769.23 |
Cost of debt | 7.0% | 7.0% |
After-tax WACC | 6.8% | 7.0% |
Selected WACC | 6.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
PRXIQ | Premier Exhibitions Inc | 1130769.2 | -72.18 | 0 |
TVRB.PA | Televerbier SA | 0.55 | -0.65 | -0.42 |
AAP.H.V | Alpha Peak Leisure Inc | 0.02 | 0.96 | 0.94 |
CLUBQ | Town Sports International Holdings Inc | 63244.87 | 1.57 | 0 |
DS | Drive Shack Inc | 3.99 | 1.45 | 0.3 |
GLXZ | Galaxy Gaming Inc | 0.78 | -0.66 | -0.38 |
ICE.TO | Canlan Ice Sports Corp | 0.85 | -0.09 | -0.05 |
PRKA | Parks! America Inc | 0.13 | 1.03 | 0.91 |
TWC.TO | TWC Enterprises Ltd | 0.05 | 0.34 | 0.33 |
Low | High | |
Unlevered beta | 0 | 0.24 |
Relevered beta | -190.13 | 134667.39 |
Adjusted relevered beta | -127.06 | 90227.48 |
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 PRXIQ:
cost_of_equity (252,935.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-127.06) + risk_adjustments (586.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.