PLAT.BK WACC - Weighted Average Cost of Capital
The WACC of Platinum Group PCL (PLAT.BK) is 8.0%.
| Range | Selected | |
| Cost of equity | 10.7% - 14.0% | 12.35% |
| Tax rate | 27.5% - 33.1% | 30.3% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.1% - 8.9% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 1.09 | 1.23 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.7% | 14.0% |
| Tax rate | 27.5% | 33.1% |
| Debt/Equity ratio | 0.86 | 0.86 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.1% | 8.9% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PLAT.BK | Platinum Group PCL | 0.86 | 1.29 | 0.81 |
| 526117.BO | Shervani Industrial Syndicate Ltd | 0.42 | 1.34 | 1.05 |
| CPN.BK | Central Pattana PCL | 0.58 | 1.19 | 0.86 |
| GLAND.BK | Grand Canal Land PCL | 1.36 | 1.12 | 0.58 |
| GREEN.BK | Green Resources PCL | 0.36 | 1.06 | 0.85 |
| PRECHA.BK | Preecha Group PCL | 0.58 | 1.6 | 1.14 |
| RML.BK | Raimon Land PCL | 4.98 | 1.23 | 0.28 |
| SAMCO.BK | Sammakorn PCL | 5.65 | 0.66 | 0.14 |
| SPI.BK | Saha Pathana Inter-Holding PCL | 0.5 | 0.1 | 0.08 |
| WIN.BK | Wyncoast Industrial Park PCL | 0.5 | 1.47 | 1.1 |
| Low | High | |
| Unlevered beta | 0.72 | 0.85 |
| Relevered beta | 1.13 | 1.34 |
| Adjusted relevered beta | 1.09 | 1.23 |
PLAT.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 PLAT.BK:
cost_of_equity (12.35%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.09) + 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.