NOBLE.BK WACC - Weighted Average Cost of Capital
The WACC of Noble Development PCL (NOBLE.BK) is 6.4%.
| Range | Selected | |
| Cost of equity | 6.3% - 10.2% | 8.25% |
| Tax rate | 22.8% - 24.0% | 23.4% |
| Cost of debt | 5.0% - 11.1% | 8.05% |
| WACC | 4.2% - 8.6% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.5 | 0.78 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 10.2% |
| Tax rate | 22.8% | 24.0% |
| Debt/Equity ratio | 7.03 | 7.03 |
| Cost of debt | 5.0% | 11.1% |
| After-tax WACC | 4.2% | 8.6% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NOBLE.BK | Noble Development PCL | 7.03 | 0.95 | 0.15 |
| A.BK | Areeya Property PCL | 1.92 | 0.03 | 0.01 |
| ALL.BK | All Inspire Development PCL | 245.54 | -1.5 | -0.01 |
| LALIN.BK | Lalin Property PCL | 1.33 | 0.55 | 0.27 |
| LPN.BK | LPN Development PCL | 4.37 | 0.83 | 0.19 |
| MJD.BK | Major Development PCL | 29.43 | 0.88 | 0.04 |
| NVD.BK | Nirvana Daii PCL | 4.77 | 0.19 | 0.04 |
| PF.BK | Property Perfect PCL | 27.47 | 1.71 | 0.08 |
| S.BK | Singha Estate PCL | 11.76 | 1.54 | 0.16 |
| Low | High | |
| Unlevered beta | 0.05 | 0.14 |
| Relevered beta | 0.25 | 0.67 |
| Adjusted relevered beta | 0.5 | 0.78 |
NOBLE.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 NOBLE.BK:
cost_of_equity (8.25%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.5) + 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.