Pangaea Logistics SolutionsPANL -2.00%69 WACC % is 11.76% as of Jun. 29, 2026, which is 90% above its 10-year median of 6.19. GuruFocus rates PANL with a GF Score™ of 69/100 and a GF Value™ of $5.85 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,025 Transportation companies, Pangaea Logistics Solutions ranks worse than 86.34% on this metric.
As of today (2026-06-29), Pangaea Logistics Solutions's weighted average cost of capital is 11.76%%. Pangaea Logistics Solutions's ROIC % is 5.72% (calculated using TTM income statement data).
Pangaea Logistics Solutions earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Pangaea Logistics Solutions's weighted average cost of capital is 11.76%%. Pangaea Logistics Solutions's ROIC % is 5.72% (calculated using TTM income statement data).
Pangaea Logistics Solutions earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
Pangaea Logistics Solutions WACC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Marine Shipping subindustry, Pangaea Logistics Solutions's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Pangaea Logistics Solutions WACC % vs Transportation Industry
For the Transportation industry and Industrials sector, Pangaea Logistics Solutions's WACC % distribution charts can be found below:
* The bar in red indicates where Pangaea Logistics Solutions's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Pangaea Logistics Solutions's market capitalization (E) is $444.821 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Pangaea Logistics Solutions's latest one-year quarterly average Book Value of Debt (D) is $185.9098 Mil.
a) weight of equity = E / (E + D) = 444.821 / (444.821 + 185.9098) = 0.7052
b) weight of debt = D / (E + D) = 185.9098 / (444.821 + 185.9098) = 0.2948
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.382%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Pangaea Logistics Solutions's beta is 1.1576.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.382% + 1.1576 * 6% = 11.3276%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Pangaea Logistics Solutions's interest expense (positive number) was $23.804 Mil. Its total Book Value of Debt (D) is $185.9098 Mil.
Cost of Debt = 23.804 / 185.9098 = 12.8041%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 0 / 36.032 = 0%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Pangaea Logistics Solutions (PANL) has a WACC % of 11.76% as of Jun. 29, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Pangaea Logistics Solutions and its competitors. This is 90% above median its historical median of 6.19. Over the past decade, Pangaea Logistics Solutions' WACC % has ranged from 3.86 to 11.76. According to the industry distribution chart, Pangaea Logistics Solutions ranks #885 out of 1025 companies in the Transportation industry, placing it in the top 86.3%.
Is Pangaea Logistics Solutions' WACC % too high?
Pangaea Logistics Solutions' current WACC % of 11.76% is 90% above median its 10-year median of 6.19. Over the past 10 years, this metric has ranged from a low of 3.86 to a high of 11.76. The Transportation industry median WACC % is 7.76. Pangaea Logistics Solutions' value of 11.76% is 51.5% above this industry median. Based on the distribution chart, Pangaea Logistics Solutions ranks #885 out of 1025 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Pangaea Logistics Solutions has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pangaea Logistics Solutions' WACC % compare to CMDB and ESEA?
According to the Transportation industry distribution chart, Pangaea Logistics Solutions ranks #885 out of 1025 companies for WACC %. This places Pangaea Logistics Solutions in the lower half of its industry. The industry median WACC % is 7.76. Pangaea Logistics Solutions' value of 11.76% is 51.5% above this benchmark. Historically, Pangaea Logistics Solutions' own WACC % has ranged from 3.86 to 11.76 over the past decade. While the company's 10-year median is 6.19 vs. the industry median of 7.76, Pangaea Logistics Solutions has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Transportation company?
The median WACC % among Transportation companies is 7.76, based on 1,025 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pangaea Logistics Solutions's current WACC % of 11.76% is 51.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Pangaea Logistics Solutions and its competitors. For the Transportation industry, the median WACC % is 7.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pangaea Logistics Solutions's current WACC % is 11.76%, which is 90% above median its own 10-year median of 6.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pangaea Logistics Solutions stock overvalued right now?
Based on GuruFocus' analysis, Pangaea Logistics Solutions (PANL) is currently considered Modestly Overvalued. The stock's GF Value™ is $5.85, compared to a current price of $6.80 — trading 16.2% above its estimated fair value. The current WACC % is 11.76%, which is 90% above median its 10-year median of 6.19 and 51.5% above the Transportation industry median of 7.76. Pangaea Logistics Solutions' overall GF Score™ is 69/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Pangaea Logistics Solutions (PANL), the current WACC % is 11.76% as of Jun. 29, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Pangaea Logistics Solutions (PANL) Overvalued in 2026?
Based on GuruFocus' analysis, Pangaea Logistics Solutions stock appears to be overvalued.
The current stock price of $6.80 is trading 16.2% above its estimated GF Value™ of $5.85.
GuruFocus considers Pangaea Logistics Solutions to be Modestly Overvalued.
Key valuation signals for PANL:
WACC %: 11.76% (90% above median its 10-year median of 6.19)
GF Value™: $5.85 vs. price of $6.80 (16.2% above fair value)
Industry Position: 51.5% above the Transportation median (#885 of 1025)
No single metric tells the full story. See the PANL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pangaea Logistics Solutions Ltd and its subsidiaries collectively, Pangaea or the Company, provide seaborne drybulk logistics and transportation services as well as terminal and stevedoring services. Pangaea utilizes its logistics expertise to service a broad base of industrial customers who require the transportation of a wide variety of dry bulk cargoes, including grains, coal, iron ore, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone. The Company's operating segments include the shipping segment: The Company's operating segments include the shipping segment and six terminal and stevedoring operating segments. The company operates in the USA, Germany, Canada, Singapore, the United Kingdom, and other countries, with maximum from the USA and others.
69GF Score
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