ANAN.BK
Ananda Development PCL
Price:  
0.41 
THB
Volume:  
10,001,100
Thailand | Real Estate Management & Development

ANAN.BK WACC - Weighted Average Cost of Capital

The WACC of Ananda Development PCL (ANAN.BK) is 11.2%.

The Cost of Equity of Ananda Development PCL (ANAN.BK) is 7.4%.
The Cost of Debt of Ananda Development PCL (ANAN.BK) is 14.5%.

RangeSelected
Cost of equity6.2% - 8.6%7.4%
Tax rate14.0% - 21.1%17.55%
Cost of debt6.4% - 22.6%14.5%
WACC5.6% - 16.8%11.2%
WACC

ANAN.BK WACC calculation

CategoryLowHigh
Long-term bond rate2.6%3.1%
Equity market risk premium7.4%8.4%
Adjusted beta0.490.6
Additional risk adjustments0.0%0.5%
Cost of equity6.2%8.6%
Tax rate14.0%21.1%
Debt/Equity ratio
8.18.1
Cost of debt6.4%22.6%
After-tax WACC5.6%16.8%
Selected WACC11.2%

ANAN.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 ANAN.BK:

cost_of_equity (7.40%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.49) + 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.