PELIKAN.KL WACC - Weighted Average Cost of Capital
The WACC of Pelikan International Corporation Bhd (PELIKAN.KL) is 7.2%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.3% | 7.3% |
| Tax rate | 32.3% - 41.8% | 37.05% |
| Cost of debt | 4.0% - 15.6% | 9.8% |
| WACC | 6.1% - 8.3% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.36 | 0.45 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.3% |
| Tax rate | 32.3% | 41.8% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 4.0% | 15.6% |
| After-tax WACC | 6.1% | 8.3% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PELIKAN.KL | Pelikan International Corporation Bhd | 0.05 | 0.78 | 0.76 |
| 40N.SI | Versalink Holdings Ltd | 0.14 | 0.38 | 0.34 |
| 7957.T | Fujicopian Co Ltd | 0.98 | 0.2 | 0.12 |
| 7975.T | Lihit Lab Inc | 0.1 | 0.13 | 0.12 |
| 7980.T | Shigematsu Works Co Ltd | 0.89 | 0.41 | 0.26 |
| CWG.KL | CWG Holdings Bhd | 0.22 | 0.26 | 0.23 |
| JADI.KL | Jadi Imaging Holdings Bhd | 0.17 | -0.15 | -0.13 |
| KOMARK.KL | Komarkcorp Bhd | 1 | 0.73 | 0.44 |
| TAFI.KL | TAFI Industries Bhd | 0.19 | 0.64 | 0.57 |
| TIENWAH.KL | Tien Wah Press Holdings Bhd | 0.14 | 0.39 | 0.36 |
| Low | High | |
| Unlevered beta | 0.24 | 0.35 |
| Relevered beta | 0.04 | 0.18 |
| Adjusted relevered beta | 0.36 | 0.45 |
PELIKAN.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 PELIKAN.KL:
cost_of_equity (7.30%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.36) + 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.