PCR.WA WACC - Weighted Average Cost of Capital

The WACC of PCC Rokita SA (PCR.WA) is 10.4%.

The Cost of Equity of PCC Rokita SA (PCR.WA) is 12.55%.

The Cost of Debt of PCC Rokita SA (PCR.WA) is 6.00%.

	Range	Selected
Cost of equity	10.70% - 14.40%	12.55%
Tax rate	10.70% - 12.30%	11.50%
Cost of debt	5.30% - 6.70%	6.00%
WACC	8.9% - 11.8%	10.4%

WACC

PCR.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.82	1.07

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	14.40%

Tax rate	10.70%	12.30%
Debt/Equity ratio	0.43	0.43
Cost of debt	5.30%	6.70%

After-tax WACC	8.9%	11.8%


Selected WACC	10.4%

PCR.WA'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 PCR.WA:

cost_of_equity (12.55%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.82) + 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.