LRH.BK
Laguna Resorts and Hotels PCL
Price:  
33.75 
THB
Volume:  
1,300
Thailand | Hotels, Restaurants & Leisure

LRH.BK WACC - Weighted Average Cost of Capital

The WACC of Laguna Resorts and Hotels PCL (LRH.BK) is 6.9%.

The Cost of Equity of Laguna Resorts and Hotels PCL (LRH.BK) is 10%.
The Cost of Debt of Laguna Resorts and Hotels PCL (LRH.BK) is 4.25%.

RangeSelected
Cost of equity7.8% - 12.2%10%
Tax rate15.8% - 25.9%20.85%
Cost of debt4.0% - 4.5%4.25%
WACC5.7% - 8.1%6.9%
WACC

LRH.BK WACC calculation

CategoryLowHigh
Long-term bond rate2.6%3.1%
Equity market risk premium7.4%8.4%
Adjusted beta0.71.02
Additional risk adjustments0.0%0.5%
Cost of equity7.8%12.2%
Tax rate15.8%25.9%
Debt/Equity ratio
0.870.87
Cost of debt4.0%4.5%
After-tax WACC5.7%8.1%
Selected WACC6.9%

LRH.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 LRH.BK:

cost_of_equity (10.00%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.7) + 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.