NEP.BK WACC - Weighted Average Cost of Capital
The WACC of NEP Realty and Industry PCL (NEP.BK) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.3% - 7.3% | 6.3% |
| Tax rate | 20.0% - 20.0% | 20% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.3% - 7.3% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.37 | 0.45 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 7.3% |
| Tax rate | 20.0% | 20.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.3% | 7.3% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NEP.BK | NEP Realty and Industry PCL | 0 | 0.31 | 0.31 |
| 3626.HK | Hang Sang (Siu Po) International Holding Company Ltd | 0.01 | -0.66 | -0.66 |
| SPACK.BK | S Pack & Print PCL | 1.06 | 0.75 | 0.41 |
| SWAT.JK | Sriwahana Adityakarta Tbk PT | 4.83 | 0.23 | 0.05 |
| TCOAT.BK | Thai Coating Industrial PCL | 0.02 | 0.08 | 0.08 |
| TIRUPATI.NS | Shree Tirupati Balajee FIBC Ltd | 0.08 | -0.3 | -0.28 |
| TPBI.BK | TPBI PCL | 0.66 | 0.59 | 0.39 |
| TPLAS.BK | Thai Plastic Industrial (1994) PCL | 0.01 | 1.01 | 1 |
| TPP.BK | Thai Packaging & Printing PCL | 0.01 | -0.26 | -0.26 |
| VERSATL.KL | Versatile Creative Bhd | 0.11 | 0.09 | 0.08 |
| Low | High | |
| Unlevered beta | 0.07 | 0.17 |
| Relevered beta | 0.06 | 0.18 |
| Adjusted relevered beta | 0.37 | 0.45 |
NEP.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 NEP.BK:
cost_of_equity (6.30%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.37) + 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.