PDZ.KL
Pdz Holdings Bhd
Price:  
0.04 
MYR
Volume:  
200
Malaysia | Marine

PDZ.KL WACC - Weighted Average Cost of Capital

The WACC of Pdz Holdings Bhd (PDZ.KL) is 10.0%.

The Cost of Equity of Pdz Holdings Bhd (PDZ.KL) is 15.05%.
The Cost of Debt of Pdz Holdings Bhd (PDZ.KL) is 5%.

RangeSelected
Cost of equity13.4% - 16.7%15.05%
Tax rate0.3% - 0.8%0.55%
Cost of debt5.0% - 5.0%5%
WACC9.2% - 10.8%10.0%
WACC

PDZ.KL WACC calculation

CategoryLowHigh
Long-term bond rate3.8%4.3%
Equity market risk premium6.9%7.8%
Adjusted beta1.41.52
Additional risk adjustments0.0%0.5%
Cost of equity13.4%16.7%
Tax rate0.3%0.8%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC9.2%10.8%
Selected WACC10.0%

PDZ.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 PDZ.KL:

cost_of_equity (15.05%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.4) + 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.