PRTASCO.KL
Protasco Bhd
Price:  
0.20 
MYR
Volume:  
709,100.00
Malaysia | Construction & Engineering
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PRTASCO.KL WACC - Weighted Average Cost of Capital

The WACC of Protasco Bhd (PRTASCO.KL) is 8.2%.

The Cost of Equity of Protasco Bhd (PRTASCO.KL) is 18.90%.
The Cost of Debt of Protasco Bhd (PRTASCO.KL) is 4.70%.

Range Selected
Cost of equity 16.40% - 21.40% 18.90%
Tax rate 33.40% - 44.70% 39.05%
Cost of debt 4.50% - 4.90% 4.70%
WACC 7.4% - 8.9% 8.2%
WACC

PRTASCO.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 1.85 2.12
Additional risk adjustments 0.0% 0.5%
Cost of equity 16.40% 21.40%
Tax rate 33.40% 44.70%
Debt/Equity ratio 2.03 2.03
Cost of debt 4.50% 4.90%
After-tax WACC 7.4% 8.9%
Selected WACC 8.2%

PRTASCO.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 PRTASCO.KL:

cost_of_equity (18.90%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.85) + 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.