BANPU.BK
Banpu PCL
Price:  
4.08 
THB
Volume:  
32,168,900.00
Thailand | Oil, Gas & Consumable Fuels
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

BANPU.BK WACC - Weighted Average Cost of Capital

The WACC of Banpu PCL (BANPU.BK) is 9.5%.

The Cost of Equity of Banpu PCL (BANPU.BK) is 24.85%.
The Cost of Debt of Banpu PCL (BANPU.BK) is 9.60%.

Range Selected
Cost of equity 17.60% - 32.10% 24.85%
Tax rate 26.90% - 35.80% 31.35%
Cost of debt 4.90% - 14.30% 9.60%
WACC 6.0% - 13.1% 9.5%
WACC

BANPU.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 2.02 3.38
Additional risk adjustments 0.0% 0.5%
Cost of equity 17.60% 32.10%
Tax rate 26.90% 35.80%
Debt/Equity ratio 4.95 4.95
Cost of debt 4.90% 14.30%
After-tax WACC 6.0% 13.1%
Selected WACC 9.5%

BANPU.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 BANPU.BK:

cost_of_equity (24.85%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (2.02) + 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.