DTAC.BK
Total Access Communication PCL
Price:  
52.25 
THB
Volume:  
14,445,300.00
Thailand | Wireless Telecommunication Services
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DTAC.BK WACC - Weighted Average Cost of Capital

The WACC of Total Access Communication PCL (DTAC.BK) is 7.6%.

The Cost of Equity of Total Access Communication PCL (DTAC.BK) is 9.10%.
The Cost of Debt of Total Access Communication PCL (DTAC.BK) is 6.00%.

Range Selected
Cost of equity 7.20% - 11.00% 9.10%
Tax rate 14.70% - 15.10% 14.90%
Cost of debt 4.20% - 7.80% 6.00%
WACC 5.8% - 9.3% 7.6%
WACC

DTAC.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.63 0.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.20% 11.00%
Tax rate 14.70% 15.10%
Debt/Equity ratio 0.63 0.63
Cost of debt 4.20% 7.80%
After-tax WACC 5.8% 9.3%
Selected WACC 7.6%

DTAC.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 DTAC.BK:

cost_of_equity (9.10%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.63) + 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.