PBBANK.KL
Public Bank Bhd
Price:  
4.31 
MYR
Volume:  
19,902,900.00
Malaysia | Banks
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

PBBANK.KL WACC - Weighted Average Cost of Capital

The WACC of Public Bank Bhd (PBBANK.KL) is 8.0%.

The Cost of Equity of Public Bank Bhd (PBBANK.KL) is 9.20%.
The Cost of Debt of Public Bank Bhd (PBBANK.KL) is 5.00%.

Range Selected
Cost of equity 7.80% - 10.60% 9.20%
Tax rate 21.80% - 22.10% 21.95%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.9% - 9.0% 8.0%
WACC

PBBANK.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.59 0.74
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 10.60%
Tax rate 21.80% 22.10%
Debt/Equity ratio 0.3 0.3
Cost of debt 5.00% 5.00%
After-tax WACC 6.9% 9.0%
Selected WACC 8.0%

PBBANK.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 PBBANK.KL:

cost_of_equity (9.20%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.59) + 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.