CHAYO.BK WACC - Weighted Average Cost of Capital

The WACC of Chayo Group PCL (CHAYO.BK) is 8.9%.

The Cost of Equity of Chayo Group PCL (CHAYO.BK) is 14.85%.

The Cost of Debt of Chayo Group PCL (CHAYO.BK) is 7.20%.

	Range	Selected
Cost of equity	10.60% - 19.10%	14.85%
Tax rate	21.10% - 21.40%	21.25%
Cost of debt	6.20% - 8.20%	7.20%
WACC	6.9% - 10.9%	8.9%

WACC

CHAYO.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	1.08	1.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	19.10%

Tax rate	21.10%	21.40%
Debt/Equity ratio	1.86	1.86
Cost of debt	6.20%	8.20%

After-tax WACC	6.9%	10.9%


Selected WACC	8.9%

CHAYO.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 CHAYO.BK:

cost_of_equity (14.85%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.08) + 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.