Question 1

What is Peoples Financial Services Corp.'s WACC?

Accepted Answer

Peoples Financial Services Corp. (PFIS) has a Weighted Average Cost of Capital (WACC) of 16.13%. This is calculated using a Cost of Equity of 8.68% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 51.69%, with an equity weight of 76.83% in the capital structure.

Question 2

Is Peoples Financial Services Corp.'s WACC high or low?

Accepted Answer

Peoples Financial Services Corp.'s WACC of 16.13% is above the typical range, indicating higher perceived risk and cost of capital. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Peoples Financial Services Corp.'s WACC calculated?

Accepted Answer

Peoples Financial Services Corp.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.68% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 51.69%. The capital structure is 76.83% equity and 23.17% debt.

Peoples Financial Services Corp. (PFIS) — WACC 分析

WACC 构成

解读

Peoples Financial Services Corp.（PFIS）WACC：16.13%

WACC计算器

Peoples Financial Services Corp.（PFIS） WACC 解读

PFIS 公司分析

PFIS DCF 估值

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