PPG.OL WACC - Weighted Average Cost of Capital

The WACC of Pioneer Property Group ASA (PPG.OL) is 10.3%.

The Cost of Equity of Pioneer Property Group ASA (PPG.OL) is 6.20%.

The Cost of Debt of Pioneer Property Group ASA (PPG.OL) is 13.70%.

	Range	Selected
Cost of equity	5.20% - 7.20%	6.20%
Tax rate	12.80% - 16.70%	14.75%
Cost of debt	12.30% - 15.10%	13.70%
WACC	9.3% - 11.2%	10.3%

WACC

PPG.OL WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.37	0.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.20%	7.20%

Tax rate	12.80%	16.70%
Debt/Equity ratio	3	3
Cost of debt	12.30%	15.10%

After-tax WACC	9.3%	11.2%


Selected WACC	10.3%

PPG.OL'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 PPG.OL:

cost_of_equity (6.20%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.37) + 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.