PLANET.BK WACC - Weighted Average Cost of Capital

The WACC of Planet Communications Asia PCL (PLANET.BK) is 8.2%.

The Cost of Equity of Planet Communications Asia PCL (PLANET.BK) is 9.50%.

The Cost of Debt of Planet Communications Asia PCL (PLANET.BK) is 5.75%.

	Range	Selected
Cost of equity	7.30% - 11.70%	9.50%
Tax rate	21.40% - 40.50%	30.95%
Cost of debt	4.50% - 7.00%	5.75%
WACC	6.4% - 10.0%	8.2%

WACC

PLANET.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.63	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.30%	11.70%

Tax rate	21.40%	40.50%
Debt/Equity ratio	0.29	0.29
Cost of debt	4.50%	7.00%

After-tax WACC	6.4%	10.0%


Selected WACC	8.2%

PLANET.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 PLANET.BK:

cost_of_equity (9.50%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.63) + 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.