PTEL WACC - Weighted Average Cost of Capital
The WACC of Pegasus Tel Inc (PTEL) is 6.9%.
| Range | Selected | |
| Cost of equity | 5.4% - 8.5% | 6.95% |
| Tax rate | 0.3% - 0.7% | 0.5% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.3% - 8.5% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 8.5% |
| Tax rate | 0.3% | 0.7% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.3% | 8.5% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PTEL | Pegasus Tel Inc | 0.02 | 1 | 0.97 |
| ATMS | Artemis Therapeutics Inc | 0 | 0.46 | 0.46 |
| AVNI | Arvana Inc | 0 | 0.46 | 0.46 |
| FCIC | FCCC Inc | 25.43 | -0.22 | -0.01 |
| LLL.CN | Lanebury Growth Capital Ltd | 6.66 | -1.16 | -0.15 |
| MUST.H.V | Must Capital Inc | 0.07 | 1.35 | 1.26 |
| VBVT | Viabuilt Ventures Inc | 158.06 | 0 | 0 |
| ZENO | Zenosense Inc | 18.93 | -0.27 | -0.01 |
| Low | High | |
| Unlevered beta | 0 | 0.46 |
| Relevered beta | 0 | 0.48 |
| Adjusted relevered beta | 0.33 | 0.65 |
PTEL'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 PTEL:
cost_of_equity (6.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.