PTEC.L
Playtech PLC
Price:  
324.5 
GBP
Volume:  
611,430
Isle of Man | Hotels, Restaurants & Leisure

PTEC.L WACC - Weighted Average Cost of Capital

The WACC of Playtech PLC (PTEC.L) is 8.5%.

The Cost of Equity of Playtech PLC (PTEC.L) is 7.75%.
The Cost of Debt of Playtech PLC (PTEC.L) is 12.8%.

RangeSelected
Cost of equity6.8% - 8.7%7.75%
Tax rate19.0% - 19.0%19%
Cost of debt4.6% - 21.0%12.8%
WACC5.9% - 11.0%8.5%
WACC

PTEC.L WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.460.52
Additional risk adjustments0.0%0.5%
Cost of equity6.8%8.7%
Tax rate19.0%19.0%
Debt/Equity ratio
0.40.4
Cost of debt4.6%21.0%
After-tax WACC5.9%11.0%
Selected WACC8.5%

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 (7.75%) = 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.