MBAX.BK
Multibax PCL
Price:  
1.51 
THB
Volume:  
47,900
Thailand | Chemicals

MBAX.BK WACC - Weighted Average Cost of Capital

The WACC of Multibax PCL (MBAX.BK) is 13.9%.

The Cost of Equity of Multibax PCL (MBAX.BK) is 21.2%.
The Cost of Debt of Multibax PCL (MBAX.BK) is 13.3%.

RangeSelected
Cost of equity15.4% - 27.0%21.2%
Tax rate14.7% - 15.1%14.9%
Cost of debt4.0% - 22.6%13.3%
WACC6.6% - 21.2%13.9%
WACC

MBAX.BK WACC calculation

CategoryLowHigh
Long-term bond rate2.6%3.1%
Equity market risk premium7.4%8.4%
Adjusted beta1.722.77
Additional risk adjustments0.0%0.5%
Cost of equity15.4%27.0%
Tax rate14.7%15.1%
Debt/Equity ratio
2.752.75
Cost of debt4.0%22.6%
After-tax WACC6.6%21.2%
Selected WACC13.9%

MBAX.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 MBAX.BK:

cost_of_equity (21.20%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.72) + 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.