PJW.BK WACC - Weighted Average Cost of Capital

The WACC of Panjawattana Plastic PCL (PJW.BK) is 6.1%.

The Cost of Equity of Panjawattana Plastic PCL (PJW.BK) is 8.10%.

The Cost of Debt of Panjawattana Plastic PCL (PJW.BK) is 4.40%.

	Range	Selected
Cost of equity	6.80% - 9.40%	8.10%
Tax rate	11.10% - 18.80%	14.95%
Cost of debt	4.00% - 4.80%	4.40%
WACC	5.3% - 6.8%	6.1%

WACC

PJW.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.58	0.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	9.40%

Tax rate	11.10%	18.80%
Debt/Equity ratio	0.89	0.89
Cost of debt	4.00%	4.80%

After-tax WACC	5.3%	6.8%


Selected WACC	6.1%

PJW.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 PJW.BK:

cost_of_equity (8.10%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.58) + 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.