CHO.BK
Cho Thavee PCL
Price:  
0.05 
THB
Volume:  
578,200.00
Thailand | Machinery
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CHO.BK WACC - Weighted Average Cost of Capital

The WACC of Cho Thavee PCL (CHO.BK) is 8.8%.

The Cost of Equity of Cho Thavee PCL (CHO.BK) is 35.40%.
The Cost of Debt of Cho Thavee PCL (CHO.BK) is 8.40%.

Range Selected
Cost of equity 14.70% - 56.10% 35.40%
Tax rate 1.30% - 2.40% 1.85%
Cost of debt 7.00% - 9.80% 8.40%
WACC 7.1% - 10.6% 8.8%
WACC

CHO.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 1.64 6.23
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.70% 56.10%
Tax rate 1.30% 2.40%
Debt/Equity ratio 47.2 47.2
Cost of debt 7.00% 9.80%
After-tax WACC 7.1% 10.6%
Selected WACC 8.8%

CHO.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 CHO.BK:

cost_of_equity (35.40%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.64) + 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.