PTBL.TA WACC - Weighted Average Cost of Capital

The WACC of Property and Building Corp Ltd (PTBL.TA) is 7.5%.

The Cost of Equity of Property and Building Corp Ltd (PTBL.TA) is 28.65%.

The Cost of Debt of Property and Building Corp Ltd (PTBL.TA) is 5.45%.

	Range	Selected
Cost of equity	23.00% - 34.30%	28.65%
Tax rate	14.60% - 21.60%	18.10%
Cost of debt	4.30% - 6.60%	5.45%
WACC	6.2% - 8.9%	7.5%

WACC

PTBL.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	2.96	3.99

Additional risk adjustments	0.0%	0.5%
Cost of equity	23.00%	34.30%

Tax rate	14.60%	21.60%
Debt/Equity ratio	6.79	6.79
Cost of debt	4.30%	6.60%

After-tax WACC	6.2%	8.9%


Selected WACC	7.5%

PTBL.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 PTBL.TA:

cost_of_equity (28.65%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (2.96) + 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.