TPX.L WACC - Weighted Average Cost of Capital
The WACC of Panoply Holdings PLC (TPX.L) is 6.6%.
| Range | Selected | |
| Cost of equity | 6.2% - 8.2% | 7.2% |
| Tax rate | 9.4% - 15.7% | 12.55% |
| Cost of debt | 6.3% - 7.0% | 6.65% |
| WACC | 5.9% - 7.2% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.36 | 0.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 8.2% |
| Tax rate | 9.4% | 15.7% |
| Debt/Equity ratio | 0.8 | 0.8 |
| Cost of debt | 6.3% | 7.0% |
| After-tax WACC | 5.9% | 7.2% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TPX.L | Panoply Holdings PLC | 0.8 | 0.03 | 0.02 |
| ALC.MC | Altia Consultores SA | 0.07 | 0.15 | 0.15 |
| FPG.PA | Union Technologies Informatique Group SA | 1.63 | -0.18 | -0.07 |
| ITERA.OL | Itera ASA | 0.09 | 0.3 | 0.28 |
| IZER.MC | Izertis SA | 0.39 | 0.12 | 0.09 |
| NC5A.DE | NorCom Information Technology AG | 0.21 | -0.34 | -0.29 |
| NIXU.HE | Nixu Oyj | 0.07 | 0.31 | 0.29 |
| OBS.DE | Orbis AG | 0.15 | 0.04 | 0.03 |
| RED.LS | Reditus Sociedade Gestora de Participacoes Sociais SA | 105.44 | 0.33 | 0 |
| SOF B.ST | Softronic AB | 0.02 | 0.19 | 0.19 |
| Low | High | |
| Unlevered beta | 0.03 | 0.11 |
| Relevered beta | 0.04 | 0.19 |
| Adjusted relevered beta | 0.36 | 0.46 |
TPX.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 TPX.L:
cost_of_equity (7.20%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.36) + 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.