PASDEC.KL WACC - Weighted Average Cost of Capital

The WACC of Pasdec Holdings Bhd (PASDEC.KL) is 9.1%.

The Cost of Equity of Pasdec Holdings Bhd (PASDEC.KL) is 9.85%.

The Cost of Debt of Pasdec Holdings Bhd (PASDEC.KL) is 4.80%.

	Range	Selected
Cost of equity	8.50% - 11.20%	9.85%
Tax rate	32.30% - 33.80%	33.05%
Cost of debt	4.40% - 5.20%	4.80%
WACC	7.8% - 10.3%	9.1%

WACC

PASDEC.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.68	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	11.20%

Tax rate	32.30%	33.80%
Debt/Equity ratio	0.13	0.13
Cost of debt	4.40%	5.20%

After-tax WACC	7.8%	10.3%


Selected WACC	9.1%

PASDEC.KL'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 PASDEC.KL:

cost_of_equity (9.85%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.68) + 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.