PLRM.TA WACC - Weighted Average Cost of Capital

The WACC of Palram Industries 1990 Ltd (PLRM.TA) is 10.3%.

The Cost of Equity of Palram Industries 1990 Ltd (PLRM.TA) is 10.95%.

The Cost of Debt of Palram Industries 1990 Ltd (PLRM.TA) is 4.90%.

	Range	Selected
Cost of equity	9.80% - 12.10%	10.95%
Tax rate	17.40% - 17.70%	17.55%
Cost of debt	4.40% - 5.40%	4.90%
WACC	9.1% - 11.4%	10.3%

WACC

PLRM.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.8	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	12.10%

Tax rate	17.40%	17.70%
Debt/Equity ratio	0.11	0.11
Cost of debt	4.40%	5.40%

After-tax WACC	9.1%	11.4%


Selected WACC	10.3%

PLRM.TA'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 PLRM.TA:

cost_of_equity (10.95%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.8) + 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.