LANNA.BK
Lanna Resources PCL
Price:  
15.80 
THB
Volume:  
137,000.00
Thailand | Oil, Gas & Consumable Fuels
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LANNA.BK WACC - Weighted Average Cost of Capital

The WACC of Lanna Resources PCL (LANNA.BK) is 9.5%.

The Cost of Equity of Lanna Resources PCL (LANNA.BK) is 10.80%.
The Cost of Debt of Lanna Resources PCL (LANNA.BK) is 4.25%.

Range Selected
Cost of equity 8.90% - 12.70% 10.80%
Tax rate 36.90% - 37.10% 37.00%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.9% - 11.1% 9.5%
WACC

LANNA.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.86 1.08
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 12.70%
Tax rate 36.90% 37.10%
Debt/Equity ratio 0.19 0.19
Cost of debt 4.00% 4.50%
After-tax WACC 7.9% 11.1%
Selected WACC 9.5%

LANNA.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 LANNA.BK:

cost_of_equity (10.80%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.86) + 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.