CI.BK WACC - Weighted Average Cost of Capital

The WACC of Charn Issara Development PCL (CI.BK) is 10.7%.

The Cost of Equity of Charn Issara Development PCL (CI.BK) is 35.15%.

The Cost of Debt of Charn Issara Development PCL (CI.BK) is 12.05%.

	Range	Selected
Cost of equity	22.50% - 47.80%	35.15%
Tax rate	18.30% - 21.00%	19.65%
Cost of debt	4.50% - 19.60%	12.05%
WACC	4.5% - 16.9%	10.7%

WACC

CI.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	2.67	5.25

Additional risk adjustments	0.0%	0.5%
Cost of equity	22.50%	47.80%

Tax rate	18.30%	21.00%
Debt/Equity ratio	21.77	21.77
Cost of debt	4.50%	19.60%

After-tax WACC	4.5%	16.9%


Selected WACC	10.7%

CI.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 CI.BK:

cost_of_equity (35.15%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (2.67) + 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.