CK.BK WACC - Weighted Average Cost of Capital

The WACC of CH Karnchang PCL (CK.BK) is 13.1%.

The Cost of Equity of CH Karnchang PCL (CK.BK) is 18.30%.

The Cost of Debt of CH Karnchang PCL (CK.BK) is 11.80%.

	Range	Selected
Cost of equity	11.10% - 25.50%	18.30%
Tax rate	4.20% - 4.60%	4.40%
Cost of debt	4.00% - 19.60%	11.80%
WACC	5.7% - 20.4%	13.1%

WACC

CK.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	2.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	25.50%

Tax rate	4.20%	4.60%
Debt/Equity ratio	2.87	2.87
Cost of debt	4.00%	19.60%

After-tax WACC	5.7%	20.4%


Selected WACC	13.1%

CK.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 CK.BK:

cost_of_equity (18.30%) = 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.