PCCS.KL WACC - Weighted Average Cost of Capital

The WACC of Pccs Group Bhd (PCCS.KL) is 6.8%.

The Cost of Equity of Pccs Group Bhd (PCCS.KL) is 8.15%.

The Cost of Debt of Pccs Group Bhd (PCCS.KL) is 7.30%.

	Range	Selected
Cost of equity	6.50% - 9.80%	8.15%
Tax rate	21.40% - 25.60%	23.50%
Cost of debt	7.20% - 7.40%	7.30%
WACC	6.1% - 7.5%	6.8%

WACC

PCCS.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.4	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.50%	9.80%

Tax rate	21.40%	25.60%
Debt/Equity ratio	1.16	1.16
Cost of debt	7.20%	7.40%

After-tax WACC	6.1%	7.5%


Selected WACC	6.8%

PCCS.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 PCCS.KL:

cost_of_equity (8.15%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * 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.