EGCO.BK WACC - Weighted Average Cost of Capital
The WACC of Electricity Generating PCL (EGCO.BK) is 6.7%.
| Range | Selected | |
| Cost of equity | 8.1% - 13.0% | 10.55% |
| Tax rate | 9.6% - 10.8% | 10.2% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.0% - 8.4% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.75 | 1.12 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 13.0% |
| Tax rate | 9.6% | 10.8% |
| Debt/Equity ratio | 2.17 | 2.17 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.0% | 8.4% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EGCO.BK | Electricity Generating PCL | 2.17 | 1.22 | 0.41 |
| 000767.SZ | Jinneng Holding Shanxi Electric Power Co Ltd | 4.55 | 1.27 | 0.25 |
| BPP.BK | Banpu Power PCL | 1.85 | 1.55 | 0.58 |
| DTK.VN | Vinacomin Power Holding Corp | 0.54 | 0.07 | 0.05 |
| GPSC.BK | Global Power Synergy PCL | 1.46 | 2.07 | 0.9 |
| GULF.BK | Gulf Energy Development PCL | 0.54 | 1.66 | 1.12 |
| OGKB.ME | OGK-2 PAO | 0.62 | 0.24 | 0.16 |
| RATCH.BK | Ratch Group PCL | 1.68 | 0.98 | 0.39 |
| SCG.BK | Sahacogen (Chonburi) PCL | 1.96 | 0.41 | 0.15 |
| UPRO.ME | Yunipro PAO | 0.01 | 0.02 | 0.02 |
| Low | High | |
| Unlevered beta | 0.21 | 0.4 |
| Relevered beta | 0.63 | 1.18 |
| Adjusted relevered beta | 0.75 | 1.12 |
EGCO.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 EGCO.BK:
cost_of_equity (10.55%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.75) + 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.