The WACC of Pdz Holdings Bhd (PDZ.KL) is 10.0%.
Range | Selected | |
Cost of equity | 13.4% - 16.7% | 15.05% |
Tax rate | 0.3% - 0.8% | 0.55% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 9.2% - 10.8% | 10.0% |
Category | Low | High |
Long-term bond rate | 3.8% | 4.3% |
Equity market risk premium | 6.9% | 7.8% |
Adjusted beta | 1.4 | 1.52 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 13.4% | 16.7% |
Tax rate | 0.3% | 0.8% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 9.2% | 10.8% |
Selected WACC | 10.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
PDZ.KL | Pdz Holdings Bhd | 1.12 | 2.1 | 0.99 |
539841.BO | Lancer Container Lines Ltd | 0.3 | 1.12 | 0.86 |
FREIGHT.KL | Freight Management Holdings Bhd | 0.2 | 1.23 | 1.03 |
HARBOUR.KL | Harbour-Link Group Bhd | 0.09 | 0.91 | 0.83 |
HUBLINE.KL | Hubline Bhd | 0.52 | 1.75 | 1.16 |
JUTHA.BK | Jutha Maritime PCL | 0.28 | 1.19 | 0.93 |
MAYBULK.KL | Malaysian Bulk Carriers Bhd | 0.52 | 0.36 | 0.24 |
MISC.KL | MISC Bhd | 0.46 | 0.99 | 0.68 |
NELY.JK | Pelayaran Nelly Dwi Putri Tbk PT | 0.17 | 0.88 | 0.75 |
SYSCORP.KL | Shin Yang Shipping Corporation Bhd | 0.43 | -0.23 | -0.16 |
VNA.VN | Vinaship JSC | 0.22 | 1.48 | 1.22 |
Low | High | |
Unlevered beta | 0.83 | 0.93 |
Relevered beta | 1.6 | 1.78 |
Adjusted relevered beta | 1.4 | 1.52 |
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.