LDC.BK
LDC Dental PCL
Price:  
0.33 
THB
Volume:  
190,400.00
Thailand | Health Care Providers & Services
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LDC.BK WACC - Weighted Average Cost of Capital

The WACC of LDC Dental PCL (LDC.BK) is 8.4%.

The Cost of Equity of LDC Dental PCL (LDC.BK) is 8.05%.
The Cost of Debt of LDC Dental PCL (LDC.BK) is 10.60%.

Range Selected
Cost of equity 5.90% - 10.20% 8.05%
Tax rate 16.30% - 19.50% 17.90%
Cost of debt 6.90% - 14.30% 10.60%
WACC 5.8% - 10.9% 8.4%
WACC

LDC.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.45 0.79
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.90% 10.20%
Tax rate 16.30% 19.50%
Debt/Equity ratio 1.21 1.21
Cost of debt 6.90% 14.30%
After-tax WACC 5.8% 10.9%
Selected WACC 8.4%

LDC.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 LDC.BK:

cost_of_equity (8.05%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.45) + 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.