PLPL
Plandai Biotechnology Inc
Price:  
0.00 
USD
Volume:  
2,551,940.00
United States | Biotechnology
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PLPL WACC - Weighted Average Cost of Capital

The WACC of Plandai Biotechnology Inc (PLPL) is 3.4%.

The Cost of Equity of Plandai Biotechnology Inc (PLPL) is 15.55%.
The Cost of Debt of Plandai Biotechnology Inc (PLPL) is 4.25%.

Range Selected
Cost of equity 5.40% - 25.70% 15.55%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 4.00% - 4.50% 4.25%
WACC 3.0% - 3.8% 3.4%
WACC

PLPL WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.33 3.72
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 25.70%
Tax rate 26.20% 27.00%
Debt/Equity ratio 40.81 40.81
Cost of debt 4.00% 4.50%
After-tax WACC 3.0% 3.8%
Selected WACC 3.4%

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 (15.55%) = 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.