PGLOBE.KL
Paragon Globe Bhd
Price:  
0.70 
MYR
Volume:  
681,600.00
Malaysia | Trading Companies & Distributors
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PGLOBE.KL WACC - Weighted Average Cost of Capital

The WACC of Paragon Globe Bhd (PGLOBE.KL) is 7.3%.

The Cost of Equity of Paragon Globe Bhd (PGLOBE.KL) is 8.45%.
The Cost of Debt of Paragon Globe Bhd (PGLOBE.KL) is 4.25%.

Range Selected
Cost of equity 7.00% - 9.90% 8.45%
Tax rate 26.30% - 34.20% 30.25%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.1% - 8.4% 7.3%
WACC

PGLOBE.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.47 0.65
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 9.90%
Tax rate 26.30% 34.20%
Debt/Equity ratio 0.27 0.27
Cost of debt 4.00% 4.50%
After-tax WACC 6.1% 8.4%
Selected WACC 7.3%

PGLOBE.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 PGLOBE.KL:

cost_of_equity (8.45%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.47) + 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.