PLRM.TA WACC - Weighted Average Cost of Capital

The WACC of Palram Industries 1990 Ltd (PLRM.TA) is 11.4%.

The Cost of Equity of Palram Industries 1990 Ltd (PLRM.TA) is 12.85%.

The Cost of Debt of Palram Industries 1990 Ltd (PLRM.TA) is 5.25%.

	Range	Selected
Cost of equity	11.40% - 14.30%	12.85%
Tax rate	17.60% - 17.70%	17.65%
Cost of debt	5.10% - 5.40%	5.25%
WACC	10.2% - 12.6%	11.4%

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	1.08	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	14.30%

Tax rate	17.60%	17.70%
Debt/Equity ratio	0.2	0.2
Cost of debt	5.10%	5.40%

After-tax WACC	10.2%	12.6%


Selected WACC	11.4%

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 (12.85%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.08) + 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.