PB.BK WACC - Weighted Average Cost of Capital
The WACC of President Bakery PCL (PB.BK) is 7.5%.
| Range | Selected | |
| Cost of equity | 6.4% - 8.7% | 7.55% |
| Tax rate | 12.0% - 12.9% | 12.45% |
| Cost of debt | 4.0% - 6.1% | 5.05% |
| WACC | 6.4% - 8.7% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.51 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 8.7% |
| Tax rate | 12.0% | 12.9% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 6.1% |
| After-tax WACC | 6.4% | 8.7% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PB.BK | President Bakery PCL | 0 | 0.06 | 0.06 |
| ASIAN.BK | Asian Sea Corporation PCL | 0.01 | 0.38 | 0.38 |
| GFPT.BK | GFPT PCL | 0.46 | 0 | 0 |
| ICHI.BK | Ichitan Group PCL | 0 | 0.74 | 0.73 |
| KSL.BK | Khon Kaen Sugar Industry PCL | 2.86 | 1.04 | 0.3 |
| KTIS.BK | Kaset Thai International Sugar Corporation PCL | 0.61 | 0.37 | 0.24 |
| RBF.BK | R&B Food Supply PCL | 0.03 | 1.2 | 1.17 |
| SAPPE.BK | SAPPE PCL | 0.01 | 0.46 | 0.46 |
| TKN.BK | Taokaenoi Food & Marketing PCL | 0.02 | 1.2 | 1.18 |
| UVAN.BK | Univanich Palm Oil PCL | 0.01 | 0.24 | 0.24 |
| Low | High | |
| Unlevered beta | 0.27 | 0.41 |
| Relevered beta | 0.27 | 0.42 |
| Adjusted relevered beta | 0.51 | 0.61 |
PB.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 PB.BK:
cost_of_equity (7.55%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.51) + 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.