DOD.BK
DOD Biotech PCL
Price:  
1.70 
THB
Volume:  
570,800.00
Thailand | Personal Products
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DOD.BK WACC - Weighted Average Cost of Capital

The WACC of DOD Biotech PCL (DOD.BK) is 8.9%.

The Cost of Equity of DOD Biotech PCL (DOD.BK) is 9.85%.
The Cost of Debt of DOD Biotech PCL (DOD.BK) is 7.50%.

Range Selected
Cost of equity 8.60% - 11.10% 9.85%
Tax rate 16.00% - 23.40% 19.70%
Cost of debt 4.00% - 11.00% 7.50%
WACC 7.4% - 10.5% 8.9%
WACC

DOD.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.81 0.89
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.60% 11.10%
Tax rate 16.00% 23.40%
Debt/Equity ratio 0.3 0.3
Cost of debt 4.00% 11.00%
After-tax WACC 7.4% 10.5%
Selected WACC 8.9%

DOD.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 DOD.BK:

cost_of_equity (9.85%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.81) + 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.