OHTL.BK WACC - Weighted Average Cost of Capital
The WACC of OHTL PCL (OHTL.BK) is 6.4%.
| Range | Selected | |
| Cost of equity | 6.6% - 9.0% | 7.8% |
| Tax rate | 10.7% - 13.1% | 11.9% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.6% - 7.3% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.54 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 9.0% |
| Tax rate | 10.7% | 13.1% |
| Debt/Equity ratio | 0.5 | 0.5 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.6% | 7.3% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| OHTL.BK | OHTL PCL | 0.5 | 0.69 | 0.47 |
| ASIA.BK | Asia Hotel PCL | 1.47 | 0.71 | 0.31 |
| DTC.BK | Dusit Thani PCL | 1.66 | 0.6 | 0.24 |
| ERW.BK | Erawan Group PCL | 1.52 | 1.72 | 0.73 |
| GRAND.BK | Grande Asset Hotels and Property PCL | 26.09 | 1.26 | 0.05 |
| LRH.BK | Laguna Resorts and Hotels PCL | 0.79 | 0.14 | 0.08 |
| MANRIN.BK | Mandarin Hotel PCL | 0.35 | 0.46 | 0.35 |
| ROH.BK | Royal Orchid Hotel Thailand PCL | 2.77 | 0.13 | 0.04 |
| SHR.BK | S Hotels and Resorts PCL | 2.97 | 1.48 | 0.41 |
| VRANDA.BK | Veranda Resort PCL | 2.08 | 0.49 | 0.17 |
| Low | High | |
| Unlevered beta | 0.22 | 0.33 |
| Relevered beta | 0.31 | 0.48 |
| Adjusted relevered beta | 0.54 | 0.65 |
OHTL.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 OHTL.BK:
cost_of_equity (7.80%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.54) + 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.