PLPL
Plandai Biotechnology Inc
Price:  
USD
Volume:  
5,643,880
United States | Biotechnology

PLPL WACC - Weighted Average Cost of Capital

The WACC of Plandai Biotechnology Inc (PLPL) is 3.1%.

The Cost of Equity of Plandai Biotechnology Inc (PLPL) is 10.4%.
The Cost of Debt of Plandai Biotechnology Inc (PLPL) is 4.25%.

RangeSelected
Cost of equity5.4% - 15.4%10.4%
Tax rate26.2% - 27.0%26.6%
Cost of debt4.0% - 4.5%4.25%
WACC3.0% - 3.3%3.1%
WACC

PLPL WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.331.88
Additional risk adjustments0.0%0.5%
Cost of equity5.4%15.4%
Tax rate26.2%27.0%
Debt/Equity ratio
2040.322040.32
Cost of debt4.0%4.5%
After-tax WACC3.0%3.3%
Selected WACC3.1%

PLPL WACC - Detailed calculations of Beta

LowHigh
Unlevered beta00.17
Relevered beta02.31
Adjusted relevered beta0.331.88

PLPL'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 PLPL:

cost_of_equity (10.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.