PZV1L.VS WACC - Weighted Average Cost of Capital
The WACC of Pieno Zvaigzdes AB (PZV1L.VS) is 8.8%.
| Range | Selected | |
| Cost of equity | 6.8% - 12.2% | 9.5% |
| Tax rate | 12.3% - 14.6% | 13.45% |
| Cost of debt | 4.4% - 5.9% | 5.15% |
| WACC | 6.4% - 11.1% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 3.4% | 3.9% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.53 | 1.05 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 12.2% |
| Tax rate | 12.3% | 14.6% |
| Debt/Equity ratio | 0.17 | 0.17 |
| Cost of debt | 4.4% | 5.9% |
| After-tax WACC | 6.4% | 11.1% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PZV1L.VS | Pieno Zvaigzdes AB | 0.17 | 0.16 | 0.14 |
| CLI.MI | Centrale del Latte d'Italia SpA | 2.03 | 0.18 | 0.07 |
| DARDL.IS | Dardanel Onentas Gida Sanayi AS | 0.2 | 1.37 | 1.17 |
| PETUN.IS | Pinar Entegre Et ve Un Sanayii AS | 0.13 | 1.17 | 1.05 |
| RSU1L.VS | Rokiskio Suris AB | 0.27 | 0.34 | 0.28 |
| TAR.WA | Tarczynski SA | 0.53 | 0.26 | 0.18 |
| TATGD.IS | Tat Gida Sanayi AS | 0.26 | 1.06 | 0.87 |
| TIPI.PA | Tipiak SA | 0.89 | 0.42 | 0.24 |
| TUKAS.IS | Tukas Gida Sanayi ve Ticaret AS | 0.33 | 1.68 | 1.31 |
| ZMP1L.VS | Zemaitijos Pienas AB | 0.11 | 1.94 | 1.76 |
| Low | High | |
| Unlevered beta | 0.26 | 0.94 |
| Relevered beta | 0.3 | 1.07 |
| Adjusted relevered beta | 0.53 | 1.05 |
PZV1L.VS'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 PZV1L.VS:
cost_of_equity (9.50%) = risk_free_rate (3.65%) + equity_risk_premium (6.80%) * adjusted_beta (0.53) + 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.