PLCR.TA WACC - Weighted Average Cost of Capital

The WACC of Plasto-Cargal Group Ltd (PLCR.TA) is 13.5%.

The Cost of Equity of Plasto-Cargal Group Ltd (PLCR.TA) is 21.55%.

The Cost of Debt of Plasto-Cargal Group Ltd (PLCR.TA) is 15.90%.

	Range	Selected
Cost of equity	16.00% - 27.10%	21.55%
Tax rate	16.80% - 21.90%	19.35%
Cost of debt	7.00% - 24.80%	15.90%
WACC	6.9% - 20.2%	13.5%

WACC

PLCR.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.82	2.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.00%	27.10%

Tax rate	16.80%	21.90%
Debt/Equity ratio	8.68	8.68
Cost of debt	7.00%	24.80%

After-tax WACC	6.9%	20.2%


Selected WACC	13.5%

PLCR.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 PLCR.TA:

cost_of_equity (21.55%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.82) + 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.