GFPT.BK
GFPT PCL
Price:  
8.95 
THB
Volume:  
2,150,100.00
Thailand | Food Products
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GFPT.BK WACC - Weighted Average Cost of Capital

The WACC of GFPT PCL (GFPT.BK) is 6.3%.

The Cost of Equity of GFPT PCL (GFPT.BK) is 7.45%.
The Cost of Debt of GFPT PCL (GFPT.BK) is 4.25%.

Range Selected
Cost of equity 6.50% - 8.40% 7.45%
Tax rate 10.80% - 12.00% 11.40%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.6% - 7.0% 6.3%
WACC

GFPT.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.52 0.58
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.50% 8.40%
Tax rate 10.80% 12.00%
Debt/Equity ratio 0.46 0.46
Cost of debt 4.00% 4.50%
After-tax WACC 5.6% 7.0%
Selected WACC 6.3%

GFPT.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 GFPT.BK:

cost_of_equity (7.45%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.52) + 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.