PRKCORP.KL WACC - Weighted Average Cost of Capital

The WACC of Perak Corporation Bhd (PRKCORP.KL) is 5.9%.

The Cost of Equity of Perak Corporation Bhd (PRKCORP.KL) is 18.40%.

The Cost of Debt of Perak Corporation Bhd (PRKCORP.KL) is 4.65%.

	Range	Selected
Cost of equity	15.20% - 21.60%	18.40%
Tax rate	35.20% - 39.40%	37.30%
Cost of debt	4.50% - 4.80%	4.65%
WACC	5.3% - 6.5%	5.9%

WACC

PRKCORP.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	1.67	2.14

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.20%	21.60%

Tax rate	35.20%	39.40%
Debt/Equity ratio	4.12	4.12
Cost of debt	4.50%	4.80%

After-tax WACC	5.3%	6.5%


Selected WACC	5.9%

PRKCORP.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 PRKCORP.KL:

cost_of_equity (18.40%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.67) + 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.