PPS.BK WACC - Weighted Average Cost of Capital

The WACC of Project Planning Service PCL (PPS.BK) is 11.9%.

The Cost of Equity of Project Planning Service PCL (PPS.BK) is 12.30%.

The Cost of Debt of Project Planning Service PCL (PPS.BK) is 14.75%.

	Range	Selected
Cost of equity	8.80% - 15.80%	12.30%
Tax rate	19.90% - 22.10%	21.00%
Cost of debt	6.90% - 22.60%	14.75%
WACC	7.0% - 16.7%	11.9%

WACC

PPS.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.83	1.44

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	15.80%

Tax rate	19.90%	22.10%
Debt/Equity ratio	1.21	1.21
Cost of debt	6.90%	22.60%

After-tax WACC	7.0%	16.7%


Selected WACC	11.9%

PPS.BK'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 PPS.BK:

cost_of_equity (12.30%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.83) + 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.