PRTC.TA WACC - Weighted Average Cost of Capital

The WACC of Priortech Ltd (PRTC.TA) is 12.2%.

The Cost of Equity of Priortech Ltd (PRTC.TA) is 12.45%.

The Cost of Debt of Priortech Ltd (PRTC.TA) is 5.00%.

	Range	Selected
Cost of equity	10.90% - 14.00%	12.45%
Tax rate	0.20% - 0.40%	0.30%
Cost of debt	5.00% - 5.00%	5.00%
WACC	10.7% - 13.7%	12.2%

WACC

PRTC.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	5.6%	6.6%
Adjusted beta	1.08	1.23

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	14.00%

Tax rate	0.20%	0.40%
Debt/Equity ratio	0.04	0.04
Cost of debt	5.00%	5.00%

After-tax WACC	10.7%	13.7%


Selected WACC	12.2%

PRTC.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 PRTC.TA:

cost_of_equity (12.45%) = risk_free_rate (5.05%) + equity_risk_premium (6.10%) * adjusted_beta (1.08) + 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.