CPR.BK WACC - Weighted Average Cost of Capital

The WACC of CPR Gomu Industrial PCL (CPR.BK) is 7.8%.

The Cost of Equity of CPR Gomu Industrial PCL (CPR.BK) is 7.75%.

The Cost of Debt of CPR Gomu Industrial PCL (CPR.BK) is 40.85%.

	Range	Selected
Cost of equity	6.80% - 8.70%	7.75%
Tax rate	18.40% - 19.90%	19.15%
Cost of debt	4.00% - 77.70%	40.85%
WACC	6.8% - 8.7%	7.8%

WACC

CPR.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.57	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	8.70%

Tax rate	18.40%	19.90%
Debt/Equity ratio	0	0
Cost of debt	4.00%	77.70%

After-tax WACC	6.8%	8.7%


Selected WACC	7.8%

CPR.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 CPR.BK:

cost_of_equity (7.75%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.57) + 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.