CMAN.BK
Chememan PCL
Price:  
2.32 
THB
Volume:  
183,600.00
Thailand | Chemicals
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CMAN.BK WACC - Weighted Average Cost of Capital

The WACC of Chememan PCL (CMAN.BK) is 7.2%.

The Cost of Equity of Chememan PCL (CMAN.BK) is 12.30%.
The Cost of Debt of Chememan PCL (CMAN.BK) is 5.95%.

Range Selected
Cost of equity 10.50% - 14.10% 12.30%
Tax rate 22.60% - 29.60% 26.10%
Cost of debt 5.70% - 6.20% 5.95%
WACC 6.6% - 7.8% 7.2%
WACC

CMAN.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 1.07 1.25
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.50% 14.10%
Tax rate 22.60% 29.60%
Debt/Equity ratio 1.84 1.84
Cost of debt 5.70% 6.20%
After-tax WACC 6.6% 7.8%
Selected WACC 7.2%

CMAN.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 CMAN.BK:

cost_of_equity (12.30%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.07) + 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.