PRTC.TA WACC - Weighted Average Cost of Capital

The WACC of Priortech Ltd (PRTC.TA) is 12.1%.

The Cost of Equity of Priortech Ltd (PRTC.TA) is 12.25%.

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

	Range	Selected
Cost of equity	10.70% - 13.80%	12.25%
Tax rate	0.20% - 0.40%	0.30%
Cost of debt	5.00% - 5.00%	5.00%
WACC	10.6% - 13.6%	12.1%

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	1.05	1.2

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	13.80%

Tax rate	0.20%	0.40%
Debt/Equity ratio	0.03	0.03
Cost of debt	5.00%	5.00%

After-tax WACC	10.6%	13.6%


Selected WACC	12.1%

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 (12.25%) = risk_free_rate (5.05%) + equity_risk_premium (6.10%) * adjusted_beta (1.05) + 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.