CBG.BK
Carabao Group PCL
Price:  
57 
THB
Volume:  
2,928,600
Thailand | Beverages

CBG.BK WACC - Weighted Average Cost of Capital

The WACC of Carabao Group PCL (CBG.BK) is 7.4%.

The Cost of Equity of Carabao Group PCL (CBG.BK) is 7.6%.
The Cost of Debt of Carabao Group PCL (CBG.BK) is 4.25%.

RangeSelected
Cost of equity6.5% - 8.7%7.6%
Tax rate15.6% - 15.9%15.75%
Cost of debt4.0% - 4.5%4.25%
WACC6.3% - 8.4%7.4%
WACC

CBG.BK WACC calculation

CategoryLowHigh
Long-term bond rate2.6%3.1%
Equity market risk premium7.4%8.4%
Adjusted beta0.530.61
Additional risk adjustments0.0%0.5%
Cost of equity6.5%8.7%
Tax rate15.6%15.9%
Debt/Equity ratio
0.060.06
Cost of debt4.0%4.5%
After-tax WACC6.3%8.4%
Selected WACC7.4%

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 (7.60%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.53) + 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.