The WACC of Multibax PCL (MBAX.BK) is 13.9%.
Range | Selected | |
Cost of equity | 15.4% - 27.0% | 21.2% |
Tax rate | 14.7% - 15.1% | 14.9% |
Cost of debt | 4.0% - 22.6% | 13.3% |
WACC | 6.6% - 21.2% | 13.9% |
Category | Low | High |
Long-term bond rate | 2.6% | 3.1% |
Equity market risk premium | 7.4% | 8.4% |
Adjusted beta | 1.72 | 2.77 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 15.4% | 27.0% |
Tax rate | 14.7% | 15.1% |
Debt/Equity ratio | 2.75 | 2.75 |
Cost of debt | 4.0% | 22.6% |
After-tax WACC | 6.6% | 21.2% |
Selected WACC | 13.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
MBAX.BK | Multibax PCL | 2.75 | 0.97 | 0.29 |
526143.BO | MPL Plastics Ltd | 0.26 | 1.46 | 1.19 |
EASON.BK | Eason & Co PCL | 0.04 | 0.66 | 0.64 |
EPG.BK | Eastern Polymer Group PCL | 0.7 | 1.64 | 1.03 |
TFI.BK | Thai Film Industries PCL | 0.31 | 1.5 | 1.19 |
TNPC.BK | Thai Nam Plastic PCL | 1.33 | 0.48 | 0.23 |
TOA.BK | TOA Paint Thailand PCL | 0.06 | 1.32 | 1.26 |
TPA.BK | Thai Poly Acrylic PCL | 0.03 | 1.4 | 1.37 |
UBIS.BK | UBIS Asia PCL | 0.89 | 1.05 | 0.6 |
UP.BK | Union Plastic PCL | 0 | 0.59 | 0.58 |
Low | High | |
Unlevered beta | 0.62 | 1.09 |
Relevered beta | 2.07 | 3.64 |
Adjusted relevered beta | 1.72 | 2.77 |
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.