CMC.BK WACC - Weighted Average Cost of Capital

The WACC of Chaopraya Mahanakorn PCL (CMC.BK) is 12.2%.

The Cost of Equity of Chaopraya Mahanakorn PCL (CMC.BK) is 7.75%.

The Cost of Debt of Chaopraya Mahanakorn PCL (CMC.BK) is 15.35%.

	Range	Selected
Cost of equity	6.40% - 9.10%	7.75%
Tax rate	10.10% - 16.60%	13.35%
Cost of debt	8.10% - 22.60%	15.35%
WACC	7.2% - 17.3%	12.2%

WACC

CMC.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.52	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	9.10%

Tax rate	10.10%	16.60%
Debt/Equity ratio	5.3	5.3
Cost of debt	8.10%	22.60%

After-tax WACC	7.2%	17.3%


Selected WACC	12.2%

CMC.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 CMC.BK:

cost_of_equity (7.75%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.52) + 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.