PATO.BK
Pato Chemical Industry PCL
Price:  
7.60 
THB
Volume:  
4,600.00
Thailand | Chemicals
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PATO.BK WACC - Weighted Average Cost of Capital

The WACC of Pato Chemical Industry PCL (PATO.BK) is 7.2%.

The Cost of Equity of Pato Chemical Industry PCL (PATO.BK) is 7.35%.
The Cost of Debt of Pato Chemical Industry PCL (PATO.BK) is 4.25%.

Range Selected
Cost of equity 6.00% - 8.70% 7.35%
Tax rate 19.20% - 19.40% 19.30%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.9% - 8.6% 7.2%
WACC

PATO.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.46 0.61
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.00% 8.70%
Tax rate 19.20% 19.40%
Debt/Equity ratio 0.03 0.03
Cost of debt 4.00% 4.50%
After-tax WACC 5.9% 8.6%
Selected WACC 7.2%

PATO.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 PATO.BK:

cost_of_equity (7.35%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.46) + 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.