CMAN.BK
Chememan PCL
Price:  
2.22 
THB
Volume:  
80,800.00
Thailand | Chemicals
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CMAN.BK WACC - Weighted Average Cost of Capital

The WACC of Chememan PCL (CMAN.BK) is 7.7%.

The Cost of Equity of Chememan PCL (CMAN.BK) is 14.35%.
The Cost of Debt of Chememan PCL (CMAN.BK) is 5.15%.

Range Selected
Cost of equity 11.30% - 17.40% 14.35%
Tax rate 22.00% - 27.40% 24.70%
Cost of debt 4.30% - 6.00% 5.15%
WACC 6.2% - 9.1% 7.7%
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 1.17 1.65
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.30% 17.40%
Tax rate 22.00% 27.40%
Debt/Equity ratio 1.75 1.75
Cost of debt 4.30% 6.00%
After-tax WACC 6.2% 9.1%
Selected WACC 7.7%

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 (14.35%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.17) + 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.