PL.BK WACC - Weighted Average Cost of Capital

The WACC of Phatra Leasing PCL (PL.BK) is 6.7%.

The Cost of Equity of Phatra Leasing PCL (PL.BK) is 34.25%.

The Cost of Debt of Phatra Leasing PCL (PL.BK) is 5.50%.

	Range	Selected
Cost of equity	25.50% - 43.00%	34.25%
Tax rate	19.40% - 25.60%	22.50%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.1% - 8.3%	6.7%

WACC

PL.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	3.09	4.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	25.50%	43.00%

Tax rate	19.40%	25.60%
Debt/Equity ratio	11.2	11.2
Cost of debt	4.00%	7.00%

After-tax WACC	5.1%	8.3%


Selected WACC	6.7%

PL.BK'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 PL.BK:

cost_of_equity (34.25%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (3.09) + 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.