PPS.BK WACC - Weighted Average Cost of Capital

The WACC of Project Planning Service PCL (PPS.BK) is 6.8%.

The Cost of Equity of Project Planning Service PCL (PPS.BK) is 7.15%.

The Cost of Debt of Project Planning Service PCL (PPS.BK) is 8.90%.

	Range	Selected
Cost of equity	5.50% - 8.80%	7.15%
Tax rate	22.10% - 27.60%	24.85%
Cost of debt	6.70% - 11.10%	8.90%
WACC	5.3% - 8.3%	6.8%

WACC

PPS.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.39	0.62

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.50%	8.80%

Tax rate	22.10%	27.60%
Debt/Equity ratio	1.45	1.45
Cost of debt	6.70%	11.10%

After-tax WACC	5.3%	8.3%


Selected WACC	6.8%

PPS.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 PPS.BK:

cost_of_equity (7.15%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.39) + 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.