BCP.BK WACC - Weighted Average Cost of Capital

The WACC of Bangchak Corporation PCL (BCP.BK) is 6.2%.

The Cost of Equity of Bangchak Corporation PCL (BCP.BK) is 16.45%.

The Cost of Debt of Bangchak Corporation PCL (BCP.BK) is 4.25%.

	Range	Selected
Cost of equity	12.30% - 20.60%	16.45%
Tax rate	37.50% - 43.80%	40.65%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.1% - 7.3%	6.2%

WACC

BCP.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	1.32	2.02

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	20.60%

Tax rate	37.50%	43.80%
Debt/Equity ratio	2.82	2.82
Cost of debt	4.00%	4.50%

After-tax WACC	5.1%	7.3%


Selected WACC	6.2%

BCP.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 BCP.BK:

cost_of_equity (16.45%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.32) + 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.