PLAT.BK
Platinum Group PCL
Price:  
1.15 
THB
Volume:  
595,400.00
Thailand | Real Estate Management & Development
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PLAT.BK WACC - Weighted Average Cost of Capital

The WACC of Platinum Group PCL (PLAT.BK) is 7.9%.

The Cost of Equity of Platinum Group PCL (PLAT.BK) is 12.40%.
The Cost of Debt of Platinum Group PCL (PLAT.BK) is 4.25%.

Range Selected
Cost of equity 10.70% - 14.10% 12.40%
Tax rate 27.50% - 33.10% 30.30%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.0% - 8.8% 7.9%
WACC

PLAT.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 1.1 1.25
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.70% 14.10%
Tax rate 27.50% 33.10%
Debt/Equity ratio 0.93 0.93
Cost of debt 4.00% 4.50%
After-tax WACC 7.0% 8.8%
Selected WACC 7.9%

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 (12.40%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.1) + 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.