PRTASCO.KL WACC - Weighted Average Cost of Capital
The WACC of Protasco Bhd (PRTASCO.KL) is 8.6%.
| Range | Selected | |
| Cost of equity | 15.0% - 18.4% | 16.7% |
| Tax rate | 35.7% - 46.9% | 41.3% |
| Cost of debt | 4.9% - 5.0% | 4.95% |
| WACC | 8.0% - 9.2% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 1.63 | 1.73 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.0% | 18.4% |
| Tax rate | 35.7% | 46.9% |
| Debt/Equity ratio | 1.41 | 1.41 |
| Cost of debt | 4.9% | 5.0% |
| After-tax WACC | 8.0% | 9.2% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PRTASCO.KL | Protasco Bhd | 1.41 | 2.46 | 1.33 |
| 1693.HK | BGMC International Ltd | 0.09 | -0.07 | -0.07 |
| ECONBHD.KL | Econpile Holdings Bhd | 0.34 | 2.07 | 1.72 |
| FAJAR.KL | Fajarbaru Builder Group Bhd | 0.37 | 2.04 | 1.67 |
| GADANG.KL | Gadang Holdings Bhd | 0.9 | 1.68 | 1.09 |
| HSL.KL | Hock Seng Lee Bhd | 0.04 | 1.17 | 1.15 |
| MITRA.KL | Mitrajaya Holdings Bhd | 0.3 | 1.32 | 1.12 |
| NAIM.KL | Naim Holdings Bhd | 0.5 | 1.62 | 1.25 |
| PESONA.KL | Pesona Metro Holdings Bhd | 1.13 | 1.68 | 1 |
| PESTECH.KL | PESTECH International Bhd | 2.59 | -0.17 | -0.06 |
| TRC.KL | TRC Synergy Bhd | 0.66 | 1.34 | 0.96 |
| Low | High | |
| Unlevered beta | 1.09 | 1.15 |
| Relevered beta | 1.94 | 2.09 |
| Adjusted relevered beta | 1.63 | 1.73 |
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 (16.70%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.63) + 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.