Proficient Auto Logistics Inc
NASDAQ:PAL
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
P
|
Proficient Auto Logistics Inc
NASDAQ:PAL
|
US |
|
Star Combo Pharma Ltd
ASX:S66
|
AU |
|
Piccadily Agro Industries Ltd
BSE:530305
|
IN |
|
Bosideng International Holdings Ltd
HKEX:3998
|
HK |
|
DFI Inc
TWSE:2397
|
TW |
|
A
|
Alma Media Oyj
LSE:0DJN
|
FI |
|
N
|
NuVasive Inc
F:NK8
|
US |
|
H
|
HD Renewable Energy Co Ltd
TWSE:6873
|
TW |
|
Auckland International Airport Ltd
NZX:AIA
|
NZ |
|
L
|
L'Air Liquide Societe Anonyme pour l'Etude et l'Exploitation des Procedes Georges Claude SA
XETRA:AIL
|
FR |
|
T
|
Taeyang Corp
KOSDAQ:053620
|
KR |
|
Red Rock Resorts Inc
NASDAQ:RRR
|
US |
|
Boralex Inc
TSX:BLX
|
CA |
|
G
|
Guizhou Qianyuan Power Co Ltd
SZSE:002039
|
CN |
|
Triad Group PLC
LSE:TRD
|
UK |
|
E
|
ES Australia Israel Holdings Ltd
TASE:AUIS
|
IL |
|
Prevas AB
STO:PREV B
|
SE |
|
GUD Holdings Ltd
ASX:GUD
|
AU |
|
Cerestar Indonesia Tbk PT
IDX:TRGU
|
ID |
Discount Rate
PAL Cost of Equity
Discount Rate
PAL's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 8.1%. The Beta, indicating the stock's volatility relative to the market, is 0.9, while the current Risk-Free Rate, based on government bond yields, is 4.34%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
PAL WACC
Discount Rate
PAL's Weighted Average Cost of Capital (WACC) is calculated as the weighted average of its cost of equity and cost of debt, adjusted for tax. The WACC stands at 8.35%. This includes the cost of equity at 8.1%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 9.24%, reflecting the interest rate on PAL's debt adjusted for tax benefits. The weight of debt in the capital structure is 22.16%.
What is PAL's discount rate?
PAL 's current Cost of Equity is 8.1%, while its WACC stands at 8.35%. The selection of the appropriate discount rate is contingent on the type of cash flows being discounted.
For Equity Valuation: When valuing equity, especially in scenarios where you are discounting cash flows to equity holders (such as Net Income, Earnings Per Share (EPS), or Free Cash Flow to Equity), the Cost of Equity should be used.
For Firm Valuation: In contrast, when valuing the entire firm and discounting cash flows available to both debt and equity holders (like Free Cash Flow to the Firm), the Weighted Average Cost of Capital (WACC) is the appropriate rate."
How is Cost of Equity for PAL calculated?
The Cost of Equity represents the return a company must offer investors to compensate for the risk of investing in its stock. It's calculated using the Capital Asset Pricing Model (CAPM), which combines the risk-free rate, the stock's beta, and the equity risk premium (ERP).
This model considers the inherent risk of investing in the stock compared to a risk-free investment and the market's overall risk.
Here is how we calculate the cost of equity for PAL
How is WACC for PAL calculated?
WACC, or Weighted Average Cost of Capital, is a calculation that reflects the average rate of return a company is expected to pay its security holders to finance its assets. It is a critical measure in financial analysis for valuing a company’s entire operations.
The WACC formula combines the costs of equity and debt, weighted by their respective proportions in the company's capital structure.
Here is how we calculate WACC for PAL
