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Pangaea Logistics Solutions Ltd. (PANL) — WACC Analysis

WACC Breakdown

Pangaea Logistics Solutions Ltd. (PANL) has a weighted average cost of capital (WACC) of 8.5%. The cost of equity is 8.9%, derived from a beta of 0.82 and a risk-free rate of 5.2%. The after-tax cost of debt is 1.6%. The capital structure is 93.5% equity and 6.5% debt.

Interpretation

A WACC of 8.5% is moderate, reflecting the market's balanced risk assessment of Pangaea Logistics Solutions Ltd..

Investors can compare PANL's WACC of 8.5% against industry peers to gauge its relative financing costs. A beta of 0.82 reflects the stock's volatility relative to the broader market.

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VALUATION

PANL WACC: 8.46% for Pangaea Logistics Solutions Ltd.

Current inputs imply a 8.94% cost of equity and a 2.00% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Pangaea Logistics Solutions Ltd. Common Stock (PANL) WACC Results
Weighted Average Cost of Capital
8.46%
Cost of Equity
8.94%
Risk-Free Rate5.22%
Beta0.82
Market Risk Premium4.23%
Cost of Debt
1.58%
Pre-Tax Cost of Debt2.00%
Tax Rate21.00%
Tax Shield0.42%
Capital Structure
Equity: 93.48%($552.27M)
Debt: 6.52%($38.52M)
Equity Component
8.36%
93.48% × 8.94%
Debt Component
0.10%
6.52% × 1.58%

Pangaea Logistics Solutions Ltd. (PANL) WACC in context

Pangaea Logistics Solutions Ltd. (PANL) currently screens with an estimated WACC of 8.46%. That blends a 8.94% cost of equity, a 2.00% pre-tax cost of debt, and a 93.48% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What PANL WACC implies

A 8.46% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates PANL

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.82 and equity accounts for 93.48% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.