PL.BK WACC - Weighted Average Cost of Capital

The WACC of Phatra Leasing PCL (PL.BK) is 6.3%.

The Cost of Equity of Phatra Leasing PCL (PL.BK) is 29.10%.

The Cost of Debt of Phatra Leasing PCL (PL.BK) is 5.50%.

	Range	Selected
Cost of equity	21.10% - 37.10%	29.10%
Tax rate	19.40% - 25.60%	22.50%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.7% - 7.9%	6.3%

WACC

PL.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	2.5	3.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	21.10%	37.10%

Tax rate	19.40%	25.60%
Debt/Equity ratio	11.05	11.05
Cost of debt	4.00%	7.00%

After-tax WACC	4.7%	7.9%


Selected WACC	6.3%

PL.BK'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 PL.BK:

cost_of_equity (29.10%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (2.5) + 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.