PICORP.KL WACC - Weighted Average Cost of Capital

The WACC of Progressive Impact Corporation Bhd (PICORP.KL) is 8.8%.

The Cost of Equity of Progressive Impact Corporation Bhd (PICORP.KL) is 17.35%.

The Cost of Debt of Progressive Impact Corporation Bhd (PICORP.KL) is 6.85%.

	Range	Selected
Cost of equity	13.80% - 20.90%	17.35%
Tax rate	24.00% - 24.00%	24.00%
Cost of debt	6.80% - 6.90%	6.85%
WACC	7.7% - 9.9%	8.8%

WACC

PICORP.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	1.46	2.06

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	20.90%

Tax rate	24.00%	24.00%
Debt/Equity ratio	2.41	2.41
Cost of debt	6.80%	6.90%

After-tax WACC	7.7%	9.9%


Selected WACC	8.8%

PICORP.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 PICORP.KL:

cost_of_equity (17.35%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.46) + 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.