PLT.AX WACC - Weighted Average Cost of Capital

The WACC of Plenti Group Ltd (PLT.AX) is 5.4%.

The Cost of Equity of Plenti Group Ltd (PLT.AX) is 29.95%.

The Cost of Debt of Plenti Group Ltd (PLT.AX) is 5.50%.

	Range	Selected
Cost of equity	13.20% - 46.70%	29.95%
Tax rate	18.80% - 32.40%	25.60%
Cost of debt	4.00% - 7.00%	5.50%
WACC	3.8% - 6.9%	5.4%

WACC

PLT.AX WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.8	6.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.20%	46.70%

Tax rate	18.80%	32.40%
Debt/Equity ratio	18.04	18.04
Cost of debt	4.00%	7.00%

After-tax WACC	3.8%	6.9%


Selected WACC	5.4%

PLT.AX'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 PLT.AX:

cost_of_equity (29.95%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (1.8) + 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.