PKD.AX WACC - Weighted Average Cost of Capital
The WACC of PARKD Ltd (PKD.AX) is 7.8%.
| Range | Selected | |
| Cost of equity | 6.7% - 9.2% | 7.95% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 4.6% - 4.6% | 4.6% |
| WACC | 6.6% - 9.1% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.52 | 0.68 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 9.2% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 4.6% | 4.6% |
| After-tax WACC | 6.6% | 9.1% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PKD.AX | PARKD Ltd | 0.02 | 1.18 | 1.16 |
| 1AG.AX | Alterra Ltd | 4.37 | 0.9 | 0.22 |
| 300929.SZ | Anhui Huaqi Environmental Protection&Technology Co Ltd | 0.5 | 1.25 | 0.92 |
| 3267.T | Phil Company Inc | 0.34 | 1.02 | 0.82 |
| 6805.HK | Kimou Environmental Holding Ltd | 1.72 | 0.33 | 0.15 |
| AEI.AX | Aeris Environmental Ltd | 0.1 | 0.34 | 0.32 |
| ARA.AX | Ariadne Australia Ltd | 0.19 | 0.23 | 0.2 |
| ECT.AX | Environmental Clean Technologies Ltd | 0.26 | -0.42 | -0.35 |
| HRL.AX | HRL Holdings Ltd | 0.05 | 0.59 | 0.57 |
| PG1.AX | Pearl Global Ltd | 0.14 | 0.53 | 0.49 |
| Low | High | |
| Unlevered beta | 0.28 | 0.52 |
| Relevered beta | 0.28 | 0.52 |
| Adjusted relevered beta | 0.52 | 0.68 |
PKD.AX'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 PKD.AX:
cost_of_equity (7.95%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.52) + 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.