GCAP.BK WACC - Weighted Average Cost of Capital

The WACC of G Capital PCL (GCAP.BK) is 10.8%.

The Cost of Equity of G Capital PCL (GCAP.BK) is 16.95%.

The Cost of Debt of G Capital PCL (GCAP.BK) is 12.20%.

	Range	Selected
Cost of equity	9.70% - 24.20%	16.95%
Tax rate	17.60% - 20.10%	18.85%
Cost of debt	4.80% - 19.60%	12.20%
WACC	4.7% - 16.8%	10.8%

WACC

GCAP.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.95	2.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	24.20%

Tax rate	17.60%	20.10%
Debt/Equity ratio	6.15	6.15
Cost of debt	4.80%	19.60%

After-tax WACC	4.7%	16.8%


Selected WACC	10.8%

GCAP.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 GCAP.BK:

cost_of_equity (16.95%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.95) + 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.