POST.BK WACC - Weighted Average Cost of Capital

The WACC of Bangkok Post PCL (POST.BK) is 6.6%.

The Cost of Equity of Bangkok Post PCL (POST.BK) is 31.50%.

The Cost of Debt of Bangkok Post PCL (POST.BK) is 5.50%.

	Range	Selected
Cost of equity	26.10% - 36.90%	31.50%
Tax rate	22.70% - 36.00%	29.35%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.4% - 7.8%	6.6%

WACC

POST.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	3.17	3.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.10%	36.90%

Tax rate	22.70%	36.00%
Debt/Equity ratio	8.86	8.86
Cost of debt	4.00%	7.00%

After-tax WACC	5.4%	7.8%


Selected WACC	6.6%

POST.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 POST.BK:

cost_of_equity (31.50%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (3.17) + 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.