The WACC of PCB Technologies Ltd (PCBT.TA) is 8.2%.
| Range | Selected | |
| Cost of equity | 7.10% - 9.60% | 8.35% |
| Tax rate | 7.70% - 28.00% | 17.85% |
| Cost of debt | 5.40% - 6.00% | 5.70% |
| WACC | 7.0% - 9.4% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 4.8% | 5.3% |
| Equity market risk premium | 5.6% | 6.6% |
| Adjusted beta | 0.4 | 0.56 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.10% | 9.60% |
| Tax rate | 7.70% | 28.00% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 5.40% | 6.00% |
| After-tax WACC | 7.0% | 9.4% |
| Selected WACC | 8.2% | |
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 (8.35%) = risk_free_rate (5.05%) + equity_risk_premium (6.10%) * adjusted_beta (0.4) + 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.