EFORL.BK WACC - Weighted Average Cost of Capital

The WACC of E for L Aim PCL (EFORL.BK) is 8.2%.

The Cost of Equity of E for L Aim PCL (EFORL.BK) is 10.30%.

The Cost of Debt of E for L Aim PCL (EFORL.BK) is 5.50%.

	Range	Selected
Cost of equity	8.30% - 12.30%	10.30%
Tax rate	3.50% - 8.30%	5.90%
Cost of debt	4.80% - 6.20%	5.50%
WACC	6.8% - 9.6%	8.2%

WACC

EFORL.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.77	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	12.30%

Tax rate	3.50%	8.30%
Debt/Equity ratio	0.67	0.67
Cost of debt	4.80%	6.20%

After-tax WACC	6.8%	9.6%


Selected WACC	8.2%

EFORL.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 EFORL.BK:

cost_of_equity (10.30%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.77) + 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.