BJC.BK
Berli Jucker PCL
Price:  
19.80 
THB
Volume:  
5,278,200.00
Thailand | Food & Staples Retailing
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BJC.BK WACC - Weighted Average Cost of Capital

The WACC of Berli Jucker PCL (BJC.BK) is 6.9%.

The Cost of Equity of Berli Jucker PCL (BJC.BK) is 12.25%.
The Cost of Debt of Berli Jucker PCL (BJC.BK) is 4.85%.

Range Selected
Cost of equity 10.20% - 14.30% 12.25%
Tax rate 9.60% - 12.30% 10.95%
Cost of debt 4.00% - 5.70% 4.85%
WACC 5.8% - 8.1% 6.9%
WACC

BJC.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 1.02 1.27
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.20% 14.30%
Tax rate 9.60% 12.30%
Debt/Equity ratio 2.03 2.03
Cost of debt 4.00% 5.70%
After-tax WACC 5.8% 8.1%
Selected WACC 6.9%

BJC.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 BJC.BK:

cost_of_equity (12.25%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.02) + 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.