PMCORP.KL
Pan Malaysia Corporation Bhd
Price:  
0.11 
MYR
Volume:  
22,000.00
Malaysia | Food Products
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

PMCORP.KL WACC - Weighted Average Cost of Capital

The WACC of Pan Malaysia Corporation Bhd (PMCORP.KL) is 11.6%.

The Cost of Equity of Pan Malaysia Corporation Bhd (PMCORP.KL) is 7.20%.
The Cost of Debt of Pan Malaysia Corporation Bhd (PMCORP.KL) is 17.10%.

Range Selected
Cost of equity 6.30% - 8.10% 7.20%
Tax rate 1.20% - 3.70% 2.45%
Cost of debt 7.00% - 27.20% 17.10%
WACC 6.6% - 16.6% 11.6%
WACC

PMCORP.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.37 0.42
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 8.10%
Tax rate 1.20% 3.70%
Debt/Equity ratio 0.89 0.89
Cost of debt 7.00% 27.20%
After-tax WACC 6.6% 16.6%
Selected WACC 11.6%

PMCORP.KL'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 PMCORP.KL:

cost_of_equity (7.20%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.37) + 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.