MCOT.BK
MCOT PCL
Price:  
3.92 
THB
Volume:  
950,800.00
Thailand | Media
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MCOT.BK WACC - Weighted Average Cost of Capital

The WACC of MCOT PCL (MCOT.BK) is 7.6%.

The Cost of Equity of MCOT PCL (MCOT.BK) is 8.15%.
The Cost of Debt of MCOT PCL (MCOT.BK) is 6.20%.

Range Selected
Cost of equity 6.60% - 9.70% 8.15%
Tax rate 1.90% - 5.20% 3.55%
Cost of debt 5.40% - 7.00% 6.20%
WACC 6.3% - 8.9% 7.6%
WACC

MCOT.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.55 0.72
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.60% 9.70%
Tax rate 1.90% 5.20%
Debt/Equity ratio 0.33 0.33
Cost of debt 5.40% 7.00%
After-tax WACC 6.3% 8.9%
Selected WACC 7.6%

MCOT.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 MCOT.BK:

cost_of_equity (8.15%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.55) + 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.