PXS WACC - Weighted Average Cost of Capital
The WACC of Pyxis Tankers Inc (PXS) is 7.2%.
| Range | Selected | |
| Cost of equity | 9.7% - 15.0% | 12.35% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 6.8% - 7.5% | 7.15% |
| WACC | 6.3% - 8.0% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.26 | 1.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.7% | 15.0% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 2.72 | 2.72 |
| Cost of debt | 6.8% | 7.5% |
| After-tax WACC | 6.3% | 8.0% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PXS | Pyxis Tankers Inc | 2.72 | 1.94 | 0.65 |
| CKH | SEACOR Holdings Inc | 0.36 | 0.97 | 0.76 |
| CTRM | Castor Maritime Inc | 4.49 | 0.39 | 0.09 |
| EDRY | EuroDry Ltd | 3.81 | 0.71 | 0.19 |
| ESEA | Euroseas Ltd | 0.6 | 1.03 | 0.72 |
| GLBS | Globus Maritime Ltd | 3.64 | 0.4 | 0.11 |
| GNK | Genco Shipping & Trading Ltd | 0.13 | 1.16 | 1.06 |
| GOGL | Golden Ocean Group Ltd | 0.82 | 1.61 | 1.01 |
| NETI | Eneti Inc | 0.15 | 0.98 | 0.88 |
| PSHG | Performance Shipping Inc | 2.03 | -0.28 | -0.11 |
| Low | High | |
| Unlevered beta | 0.47 | 0.74 |
| Relevered beta | 1.39 | 2.19 |
| Adjusted relevered beta | 1.26 | 1.8 |
PXS'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 PXS:
cost_of_equity (12.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.26) + 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.