CBG.BK WACC - Weighted Average Cost of Capital
The WACC of Carabao Group PCL (CBG.BK) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.8% | 7.55% |
| Tax rate | 15.6% - 15.9% | 15.75% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.1% - 8.6% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.5 | 0.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.8% |
| Tax rate | 15.6% | 15.9% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.1% | 8.6% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CBG.BK | Carabao Group PCL | 0.06 | 0.82 | 0.79 |
| 1115.HK | Tibet Water Resources Ltd | 0.6 | 0.19 | 0.12 |
| 1234.TW | Hey-Song Corp | 0.1 | 0.23 | 0.22 |
| 2573.T | Hokkaido Coca Cola Bottling Co Ltd | 0.02 | 0.26 | 0.25 |
| F&N.KL | Fraser & Neave Holdings Bhd | 0.03 | 0.62 | 0.61 |
| HTC.BK | Haad Thip PCL | 0.17 | 0.13 | 0.12 |
| OSP.BK | Osotspa PCL | 0.06 | 0.79 | 0.76 |
| SSC.BK | Sermsuk PCL | 0.03 | -0.24 | -0.23 |
| VBL.NS | Varun Beverages Ltd | 0.02 | 1.54 | 1.52 |
| Y92.SI | Thai Beverage PCL | 0.79 | 0.49 | 0.29 |
| Low | High | |
| Unlevered beta | 0.24 | 0.42 |
| Relevered beta | 0.25 | 0.43 |
| Adjusted relevered beta | 0.5 | 0.62 |
CBG.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 CBG.BK:
cost_of_equity (7.55%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.5) + 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.