PRKCORP.KL WACC - Weighted Average Cost of Capital

The WACC of Perak Corporation Bhd (PRKCORP.KL) is 5.6%.

The Cost of Equity of Perak Corporation Bhd (PRKCORP.KL) is 17.30%.

The Cost of Debt of Perak Corporation Bhd (PRKCORP.KL) is 5.55%.

	Range	Selected
Cost of equity	15.20% - 19.40%	17.30%
Tax rate	39.40% - 42.40%	40.90%
Cost of debt	4.90% - 6.20%	5.55%
WACC	5.0% - 6.3%	5.6%

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	1.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.20%	19.40%

Tax rate	39.40%	42.40%
Debt/Equity ratio	4.89	4.89
Cost of debt	4.90%	6.20%

After-tax WACC	5.0%	6.3%


Selected WACC	5.6%

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 (17.30%) = 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.