BGRIM.BK WACC - Weighted Average Cost of Capital

The WACC of BGrimm Power PCL (BGRIM.BK) is 13.9%.

The Cost of Equity of BGrimm Power PCL (BGRIM.BK) is 22.45%.

The Cost of Debt of BGrimm Power PCL (BGRIM.BK) is 12.90%.

	Range	Selected
Cost of equity	16.40% - 28.50%	22.45%
Tax rate	6.60% - 7.50%	7.05%
Cost of debt	6.20% - 19.60%	12.90%
WACC	7.8% - 20.1%	13.9%

WACC

BGRIM.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	1.86	2.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.40%	28.50%

Tax rate	6.60%	7.50%
Debt/Equity ratio	4.27	4.27
Cost of debt	6.20%	19.60%

After-tax WACC	7.8%	20.1%


Selected WACC	13.9%

BGRIM.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 BGRIM.BK:

cost_of_equity (22.45%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.86) + 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.