PERDANA.KL WACC - Weighted Average Cost of Capital

The WACC of Perdana Petroleum Bhd (PERDANA.KL) is 10.1%.

The Cost of Equity of Perdana Petroleum Bhd (PERDANA.KL) is 10.15%.

The Cost of Debt of Perdana Petroleum Bhd (PERDANA.KL) is 12.75%.

	Range	Selected
Cost of equity	8.80% - 11.50%	10.15%
Tax rate	19.10% - 22.20%	20.65%
Cost of debt	4.40% - 21.10%	12.75%
WACC	8.8% - 11.5%	10.1%

WACC

PERDANA.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.74	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	11.50%

Tax rate	19.10%	22.20%
Debt/Equity ratio	0	0
Cost of debt	4.40%	21.10%

After-tax WACC	8.8%	11.5%


Selected WACC	10.1%

PERDANA.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 PERDANA.KL:

cost_of_equity (10.15%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.74) + 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.