The WACC of Plan B Media PCL (PLANB.BK) is 7.3%.
Range | Selected | |
Cost of equity | 6.0% - 10.1% | 8.05% |
Tax rate | 21.3% - 22.3% | 21.8% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 5.6% - 9.1% | 7.3% |
Category | Low | High |
Long-term bond rate | 2.6% | 3.1% |
Equity market risk premium | 7.4% | 8.4% |
Adjusted beta | 0.47 | 0.78 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.0% | 10.1% |
Tax rate | 21.3% | 22.3% |
Debt/Equity ratio | 0.19 | 0.19 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 5.6% | 9.1% |
Selected WACC | 7.3% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
PLANB.BK | Plan B Media PCL | 0.19 | 0.94 | 0.82 |
002751.SZ | Shenzhen ESUN Display Co Ltd | 9.79 | 0.76 | 0.09 |
230360.KQ | Echo Marketing Co Ltd | 0.09 | 0.18 | 0.17 |
4293.T | Septeni Holdings Co Ltd | 0.05 | 0.44 | 0.43 |
7354.T | Direct Marketing MIX Inc | 0.63 | 1.41 | 0.95 |
863.HK | Bc Technology Group Ltd | 0.01 | 0.18 | 0.18 |
AQUA.BK | Aqua Corporation PCL | 2.02 | 0.21 | 0.08 |
MACO.BK | Master Ad PCL | 0.12 | 1.24 | 1.13 |
VGI.BK | VGI PCL | 0.01 | 1.82 | 1.81 |
Low | High | |
Unlevered beta | 0.23 | 0.74 |
Relevered beta | 0.21 | 0.67 |
Adjusted relevered beta | 0.47 | 0.78 |
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 PLANB.BK:
cost_of_equity (8.05%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.47) + 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.