PTEC.L WACC - Weighted Average Cost of Capital
The WACC of Playtech PLC (PTEC.L) is 8.5%.
| Range | Selected | |
| Cost of equity | 6.7% - 8.7% | 7.7% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 4.6% - 21.0% | 12.8% |
| WACC | 5.8% - 11.2% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.46 | 0.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 8.7% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.43 | 0.43 |
| Cost of debt | 4.6% | 21.0% |
| After-tax WACC | 5.8% | 11.2% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PTEC.L | Playtech PLC | 0.43 | 1.29 | 0.96 |
| BETS B.ST | Betsson AB | 0.01 | 0.54 | 0.54 |
| CDR.MC | Codere SA | 61.71 | 1.12 | 0.02 |
| FCMC.PA | Fermiere du Casino Municipal Cannes SA | 0.22 | 0.15 | 0.13 |
| GYS.L | Gamesys Group PLC | 0.26 | 0.35 | 0.29 |
| PARP.PA | Groupe Partouche SA | 1.63 | 0.35 | 0.15 |
| RNK.L | Rank Group PLC | 0.46 | 0.86 | 0.63 |
| SFCA.PA | Societe Francaise de Casinos SA | 0.41 | 0.08 | 0.06 |
| SPO.L | Sportech PLC | 0.96 | 0.31 | 0.17 |
| WEB.L | Webis Holding PLC | 7.09 | -1.38 | -0.21 |
| Low | High | |
| Unlevered beta | 0.14 | 0.22 |
| Relevered beta | 0.19 | 0.3 |
| Adjusted relevered beta | 0.46 | 0.53 |
PTEC.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 PTEC.L:
cost_of_equity (7.70%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.46) + 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.