TPFG.L WACC - Weighted Average Cost of Capital
The WACC of Property Franchise Group PLC (TPFG.L) is 8.6%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.0% | 7.15% |
| Tax rate | 20.0% - 24.4% | 22.2% |
| Cost of debt | 4.6% - 98.8% | 51.7% |
| WACC | 6.2% - 11.1% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.39 | 0.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.0% |
| Tax rate | 20.0% | 24.4% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 4.6% | 98.8% |
| After-tax WACC | 6.2% | 11.1% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TPFG.L | Property Franchise Group PLC | 0.05 | 0.38 | 0.37 |
| ACCB.BR | Accentis NV | 0.35 | 0.21 | 0.16 |
| CRC.L | Circle Property PLC | 20.91 | -1.98 | -0.11 |
| EGNETY.CO | EgnsINVEST Ejendomme Tyskland A/S | 1.95 | 0.18 | 0.07 |
| IC8.DE | InCity Immobilien AG | 1.35 | 0.65 | 0.31 |
| KAPIAB.ST | Kalleback Property Invest AB | 0.65 | -0.11 | -0.07 |
| RLE.L | Real Estate Investors PLC | 0.71 | 0.27 | 0.17 |
| SOLNA.ST | Solnaberg Property AB (publ) | 1.18 | 0.17 | 0.09 |
| SPEL.PA | Fonciere Volta SA | 0.86 | 0.23 | 0.14 |
| ZUBN.SW | Zueblin Immobilien Holding AG | 0.4 | 0.1 | 0.07 |
| Low | High | |
| Unlevered beta | 0.08 | 0.15 |
| Relevered beta | 0.09 | 0.15 |
| Adjusted relevered beta | 0.39 | 0.43 |
TPFG.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 TPFG.L:
cost_of_equity (7.15%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.39) + 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.