PUC.KL WACC - Weighted Average Cost of Capital
The WACC of PUC Bhd (PUC.KL) is 9.0%.
| Range | Selected | |
| Cost of equity | 6.6% - 10.8% | 8.7% |
| Tax rate | 0.1% - 0.1% | 0.1% |
| Cost of debt | 7.0% - 17.5% | 12.25% |
| WACC | 6.7% - 11.3% | 9.0% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.42 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 10.8% |
| Tax rate | 0.1% | 0.1% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 7.0% | 17.5% |
| After-tax WACC | 6.7% | 11.3% |
| Selected WACC | 9.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PUC.KL | PUC Bhd | 0.09 | 1.67 | 1.53 |
| 1716.HK | Most Kwai Chung Ltd | 0.01 | 0.57 | 0.56 |
| 1F0.SI | Shopper360 Ltd | 0.13 | 0.72 | 0.63 |
| 6031.T | Scigineer Inc | 0.27 | 1.08 | 0.85 |
| 7063.T | Birdman Inc | 0.35 | 0.18 | 0.13 |
| 8121.HK | Guru Online (Holdings) Ltd | 0.25 | -0.36 | -0.29 |
| AMEDIA.KL | Asia Media Group Bhd | 0.04 | -1.26 | -1.2 |
| INNITY.KL | Innity Corporation Bhd | 0.14 | 0.11 | 0.1 |
| SJC.KL | Seni Jaya Corporation Bhd | 0.4 | 1.32 | 0.94 |
| Low | High | |
| Unlevered beta | 0.22 | 0.62 |
| Relevered beta | 0.13 | 0.64 |
| Adjusted relevered beta | 0.42 | 0.76 |
PUC.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 PUC.KL:
cost_of_equity (8.70%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.42) + 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.