PCBT.TA WACC - Weighted Average Cost of Capital

The WACC of PCB Technologies Ltd (PCBT.TA) is 8.5%.

The Cost of Equity of PCB Technologies Ltd (PCBT.TA) is 8.55%.

The Cost of Debt of PCB Technologies Ltd (PCBT.TA) is 5.20%.

	Range	Selected
Cost of equity	7.30% - 9.80%	8.55%
Tax rate	10.30% - 28.90%	19.60%
Cost of debt	4.60% - 5.80%	5.20%
WACC	7.3% - 9.7%	8.5%

WACC

PCBT.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	5.6%	6.6%
Adjusted beta	0.44	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.30%	9.80%

Tax rate	10.30%	28.90%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.60%	5.80%

After-tax WACC	7.3%	9.7%


Selected WACC	8.5%

PCBT.TA'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 PCBT.TA:

cost_of_equity (8.55%) = risk_free_rate (5.05%) + equity_risk_premium (6.10%) * adjusted_beta (0.44) + 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.