CFRESH.BK WACC - Weighted Average Cost of Capital

The WACC of Seafresh Industry PCL (CFRESH.BK) is 6.4%.

The Cost of Equity of Seafresh Industry PCL (CFRESH.BK) is 9.70%.

The Cost of Debt of Seafresh Industry PCL (CFRESH.BK) is 6.30%.

	Range	Selected
Cost of equity	7.90% - 11.50%	9.70%
Tax rate	18.80% - 23.20%	21.00%
Cost of debt	4.80% - 7.80%	6.30%
WACC	5.1% - 7.7%	6.4%

WACC

CFRESH.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.72	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	11.50%

Tax rate	18.80%	23.20%
Debt/Equity ratio	2.28	2.28
Cost of debt	4.80%	7.80%

After-tax WACC	5.1%	7.7%


Selected WACC	6.4%

CFRESH.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 CFRESH.BK:

cost_of_equity (9.70%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.72) + 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.