CGH.BK WACC - Weighted Average Cost of Capital

The WACC of Country Group Holdings PCL (CGH.BK) is 10.1%.

The Cost of Equity of Country Group Holdings PCL (CGH.BK) is 15.50%.

The Cost of Debt of Country Group Holdings PCL (CGH.BK) is 6.15%.

	Range	Selected
Cost of equity	11.10% - 19.90%	15.50%
Tax rate	5.60% - 12.40%	9.00%
Cost of debt	6.10% - 6.20%	6.15%
WACC	8.2% - 12.0%	10.1%

WACC

CGH.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	1.15	1.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	19.90%

Tax rate	5.60%	12.40%
Debt/Equity ratio	1.19	1.19
Cost of debt	6.10%	6.20%

After-tax WACC	8.2%	12.0%


Selected WACC	10.1%

CGH.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 CGH.BK:

cost_of_equity (15.50%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.15) + 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.