BR.BK WACC - Weighted Average Cost of Capital
The WACC of Bangkok Ranch PCL (BR.BK) is 6.4%.
| Range | Selected | |
| Cost of equity | 10.1% - 16.0% | 13.05% |
| Tax rate | 28.1% - 29.5% | 28.8% |
| Cost of debt | 4.5% - 7.8% | 6.15% |
| WACC | 4.8% - 7.9% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 1.02 | 1.48 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.1% | 16.0% |
| Tax rate | 28.1% | 29.5% |
| Debt/Equity ratio | 3.34 | 3.34 |
| Cost of debt | 4.5% | 7.8% |
| After-tax WACC | 4.8% | 7.9% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BR.BK | Bangkok Ranch PCL | 3.34 | 0.19 | 0.05 |
| CFRESH.BK | Seafresh Industry PCL | 1.99 | 0.74 | 0.3 |
| ICHI.BK | Ichitan Group PCL | 0 | 0.78 | 0.78 |
| LST.BK | Lam Soon Thailand PCL | 0.25 | 0.22 | 0.19 |
| MALEE.BK | Malee Group PCL | 0.34 | 1.67 | 1.34 |
| SSF.BK | Surapon Foods PCL | 0.37 | 0.41 | 0.32 |
| TC.BK | Tropical Canning Thailand PCL | 0.28 | -0.02 | -0.01 |
| TKN.BK | Taokaenoi Food & Marketing PCL | 0.02 | 1.2 | 1.19 |
| UVAN.BK | Univanich Palm Oil PCL | 0.01 | 0.3 | 0.3 |
| XO.BK | Exotic Food PCL | 0.01 | 1.08 | 1.07 |
| Low | High | |
| Unlevered beta | 0.3 | 0.5 |
| Relevered beta | 1.03 | 1.72 |
| Adjusted relevered beta | 1.02 | 1.48 |
BR.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 BR.BK:
cost_of_equity (13.05%) = 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.