PSDL.L
Phoenix Spree Deutschland Ltd
Price:  
169.50 
GBP
Volume:  
41,960.00
Jersey | Real Estate Management & Development
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PSDL.L WACC - Weighted Average Cost of Capital

The WACC of Phoenix Spree Deutschland Ltd (PSDL.L) is 10.3%.

The Cost of Equity of Phoenix Spree Deutschland Ltd (PSDL.L) is 7.20%.
The Cost of Debt of Phoenix Spree Deutschland Ltd (PSDL.L) is 14.00%.

Range Selected
Cost of equity 6.30% - 8.10% 7.20%
Tax rate 11.00% - 14.00% 12.50%
Cost of debt 4.00% - 24.00% 14.00%
WACC 4.6% - 16.1% 10.3%
WACC

PSDL.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.39 0.45
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 8.10%
Tax rate 11.00% 14.00%
Debt/Equity ratio 1.77 1.77
Cost of debt 4.00% 24.00%
After-tax WACC 4.6% 16.1%
Selected WACC 10.3%

PSDL.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 PSDL.L:

cost_of_equity (7.20%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.39) + 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.