EKH.BK WACC - Weighted Average Cost of Capital

The WACC of Ekachai Medical Care PCL (EKH.BK) is 7.1%.

The Cost of Equity of Ekachai Medical Care PCL (EKH.BK) is 7.15%.

The Cost of Debt of Ekachai Medical Care PCL (EKH.BK) is 5.95%.

	Range	Selected
Cost of equity	6.20% - 8.10%	7.15%
Tax rate	18.50% - 19.20%	18.85%
Cost of debt	4.00% - 7.90%	5.95%
WACC	6.1% - 8.1%	7.1%

WACC

EKH.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.49	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	8.10%

Tax rate	18.50%	19.20%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.00%	7.90%

After-tax WACC	6.1%	8.1%


Selected WACC	7.1%

EKH.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 EKH.BK:

cost_of_equity (7.15%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.49) + 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.