PTSH WACC - Weighted Average Cost of Capital
The WACC of PTS Inc (PTSH) is 5.8%.
| Range | Selected | |
| Cost of equity | 5.4% - 10.4% | 7.9% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.5% - 7.0% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 10.4% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.5% | 7.0% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PTSH | PTS Inc | 0.61 | 3.55 | 2.45 |
| ASSF | Assisted 4 Living Inc | 0 | 0.95 | 0.95 |
| AVVH | avVaa World Health Care Products Inc | 1.26 | 0.79 | 0.41 |
| ELNX | Aperture Health Inc | 1.73 | 0 | 0 |
| GLDC.V | Cassiar Gold Corp | 0 | 1.56 | 1.56 |
| GOH.CN | Goldhaven Resources Corp | 0 | -1.31 | -1.31 |
| INNV | InnovAge Holding Corp | 0.16 | 0.88 | 0.79 |
| MAHN | Mid Atlantic Home Health Network Inc | 2.65 | -0.02 | -0.01 |
| SEDO | Seedo Corp | 0.21 | 1.05 | 0.91 |
| Low | High | |
| Unlevered beta | 0.49 | 0.88 |
| Relevered beta | 0 | 0.97 |
| Adjusted relevered beta | 0.33 | 0.98 |
PTSH'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 PTSH:
cost_of_equity (7.90%) = 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.