CK.BK WACC - Weighted Average Cost of Capital

The WACC of CH Karnchang PCL (CK.BK) is 12.1%.

The Cost of Equity of CH Karnchang PCL (CK.BK) is 10.75%.

The Cost of Debt of CH Karnchang PCL (CK.BK) is 13.30%.

	Range	Selected
Cost of equity	8.30% - 13.20%	10.75%
Tax rate	4.20% - 4.60%	4.40%
Cost of debt	4.00% - 22.60%	13.30%
WACC	5.2% - 18.9%	12.1%

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	0.78	1.14

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	13.20%

Tax rate	4.20%	4.60%
Debt/Equity ratio	2.19	2.19
Cost of debt	4.00%	22.60%

After-tax WACC	5.2%	18.9%


Selected WACC	12.1%

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 (10.75%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.78) + 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.