PM.BK
Premier Marketing PCL
Price:  
10.9 
THB
Volume:  
166,100
Thailand | Food & Staples Retailing

PM.BK WACC - Weighted Average Cost of Capital

The WACC of Premier Marketing PCL (PM.BK) is 7.8%.

The Cost of Equity of Premier Marketing PCL (PM.BK) is 7.95%.
The Cost of Debt of Premier Marketing PCL (PM.BK) is 4.25%.

RangeSelected
Cost of equity6.3% - 9.6%7.95%
Tax rate18.8% - 19.6%19.2%
Cost of debt4.0% - 4.5%4.25%
WACC6.2% - 9.4%7.8%
WACC

PM.BK WACC calculation

CategoryLowHigh
Long-term bond rate2.6%3.1%
Equity market risk premium7.4%8.4%
Adjusted beta0.50.72
Additional risk adjustments0.0%0.5%
Cost of equity6.3%9.6%
Tax rate18.8%19.6%
Debt/Equity ratio
0.040.04
Cost of debt4.0%4.5%
After-tax WACC6.2%9.4%
Selected WACC7.8%

PM.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 PM.BK:

cost_of_equity (7.95%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.5) + 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.