PRT.WA WACC - Weighted Average Cost of Capital

The WACC of Protektor SA (PRT.WA) is 10.0%.

The Cost of Equity of Protektor SA (PRT.WA) is 14.20%.

The Cost of Debt of Protektor SA (PRT.WA) is 6.25%.

	Range	Selected
Cost of equity	12.70% - 15.70%	14.20%
Tax rate	19.00% - 19.00%	19.00%
Cost of debt	5.50% - 7.00%	6.25%
WACC	8.9% - 11.1%	10.0%

WACC

PRT.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	1.13	1.25

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.70%	15.70%

Tax rate	19.00%	19.00%
Debt/Equity ratio	0.83	0.83
Cost of debt	5.50%	7.00%

After-tax WACC	8.9%	11.1%


Selected WACC	10.0%

PRT.WA'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 PRT.WA:

cost_of_equity (14.20%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.13) + 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.