OISHI.BK WACC - Weighted Average Cost of Capital

The WACC of Oishi Group PCL (OISHI.BK) is 7.5%.

The Cost of Equity of Oishi Group PCL (OISHI.BK) is 7.55%.

The Cost of Debt of Oishi Group PCL (OISHI.BK) is 4.25%.

	Range	Selected
Cost of equity	6.50% - 8.60%	7.55%
Tax rate	5.30% - 7.60%	6.45%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.5% - 8.5%	7.5%

WACC

OISHI.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.53	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.50%	8.60%

Tax rate	5.30%	7.60%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.00%	4.50%

After-tax WACC	6.5%	8.5%


Selected WACC	7.5%

OISHI.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 OISHI.BK:

cost_of_equity (7.55%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.53) + 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.