PPHB.KL WACC - Weighted Average Cost of Capital
The WACC of Public Packages Holdings Bhd (PPHB.KL) is 10.0%.
| Range | Selected | |
| Cost of equity | 9.1% - 11.3% | 10.2% |
| Tax rate | 18.6% - 21.0% | 19.8% |
| Cost of debt | 4.1% - 4.5% | 4.3% |
| WACC | 8.9% - 11.1% | 10.0% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.77 | 0.83 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.1% | 11.3% |
| Tax rate | 18.6% | 21.0% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.1% | 4.5% |
| After-tax WACC | 8.9% | 11.1% |
| Selected WACC | 10.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PPHB.KL | Public Packages Holdings Bhd | 0.03 | 0.93 | 0.91 |
| DNONCE.KL | D'nonce Technology Bhd | 2.21 | 1.84 | 0.66 |
| EMMBI.NS | Emmbi Industries Ltd | 0.76 | 2.02 | 1.25 |
| GESHEN.KL | Ge-Shen Corporation Bhd | 0.2 | 0.48 | 0.41 |
| KYM.KL | KYM Holdings Bhd | 0.57 | 0.77 | 0.53 |
| MASTER.KL | Master-Pack Group Bhd | 0.02 | 0.66 | 0.65 |
| ORNA.KL | Ornapaper Bhd | 1.69 | 1.51 | 0.64 |
| TGUAN.KL | Thong Guan Industries Bhd | 0.46 | 1.16 | 0.84 |
| TOMYPAK.KL | Tomypak Holdings Bhd | 0.52 | 1.18 | 0.83 |
| VERSATL.KL | Versatile Creative Bhd | 0.12 | 0.09 | 0.08 |
| Low | High | |
| Unlevered beta | 0.64 | 0.73 |
| Relevered beta | 0.66 | 0.75 |
| Adjusted relevered beta | 0.77 | 0.83 |
PPHB.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 PPHB.KL:
cost_of_equity (10.20%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.77) + 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.