PJP.WA WACC - Weighted Average Cost of Capital

The WACC of PJP Makrum SA (PJP.WA) is 11.9%.

The Cost of Equity of PJP Makrum SA (PJP.WA) is 10.65%.

The Cost of Debt of PJP Makrum SA (PJP.WA) is 17.55%.

	Range	Selected
Cost of equity	9.40% - 11.90%	10.65%
Tax rate	21.70% - 24.40%	23.05%
Cost of debt	9.60% - 25.50%	17.55%
WACC	8.5% - 15.3%	11.9%

WACC

PJP.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.62	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.40%	11.90%

Tax rate	21.70%	24.40%
Debt/Equity ratio	0.88	0.88
Cost of debt	9.60%	25.50%

After-tax WACC	8.5%	15.3%


Selected WACC	11.9%

PJP.WA'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 PJP.WA:

cost_of_equity (10.65%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.62) + 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.