PRSK.TA WACC - Weighted Average Cost of Capital

The WACC of Prashkovsky Investments and Construction Ltd (PRSK.TA) is 9.3%.

The Cost of Equity of Prashkovsky Investments and Construction Ltd (PRSK.TA) is 10.40%.

The Cost of Debt of Prashkovsky Investments and Construction Ltd (PRSK.TA) is 10.75%.

	Range	Selected
Cost of equity	8.80% - 12.00%	10.40%
Tax rate	18.50% - 20.90%	19.70%
Cost of debt	4.90% - 16.60%	10.75%
WACC	6.0% - 12.7%	9.3%

WACC

PRSK.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.65	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	12.00%

Tax rate	18.50%	20.90%
Debt/Equity ratio	1.48	1.48
Cost of debt	4.90%	16.60%

After-tax WACC	6.0%	12.7%


Selected WACC	9.3%

PRSK.TA'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 PRSK.TA:

cost_of_equity (10.40%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.65) + 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.