CCP.BK WACC - Weighted Average Cost of Capital

The WACC of Chonburi Concrete Product PCL (CCP.BK) is 7.9%.

The Cost of Equity of Chonburi Concrete Product PCL (CCP.BK) is 13.10%.

The Cost of Debt of Chonburi Concrete Product PCL (CCP.BK) is 4.25%.

	Range	Selected
Cost of equity	11.80% - 14.40%	13.10%
Tax rate	21.60% - 26.70%	24.15%
Cost of debt	4.00% - 4.50%	4.25%
WACC	7.2% - 8.5%	7.9%

WACC

CCP.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	1.24	1.29

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	14.40%

Tax rate	21.60%	26.70%
Debt/Equity ratio	1.12	1.12
Cost of debt	4.00%	4.50%

After-tax WACC	7.2%	8.5%


Selected WACC	7.9%

CCP.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 CCP.BK:

cost_of_equity (13.10%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.24) + 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.