MBK.BK
MBK PCL
Price:  
16.90 
THB
Volume:  
989,300.00
Thailand | Real Estate Management & Development
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MBK.BK WACC - Weighted Average Cost of Capital

The WACC of MBK PCL (MBK.BK) is 6.4%.

The Cost of Equity of MBK PCL (MBK.BK) is 12.05%.
The Cost of Debt of MBK PCL (MBK.BK) is 4.25%.

Range Selected
Cost of equity 9.80% - 14.30% 12.05%
Tax rate 31.90% - 46.90% 39.40%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.6% - 7.2% 6.4%
WACC

MBK.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.97 1.27
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.80% 14.30%
Tax rate 31.90% 46.90%
Debt/Equity ratio 1.46 1.46
Cost of debt 4.00% 4.50%
After-tax WACC 5.6% 7.2%
Selected WACC 6.4%

MBK.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 MBK.BK:

cost_of_equity (12.05%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.97) + 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.