PRIN.BK WACC - Weighted Average Cost of Capital

The WACC of Prinsiri PCL (PRIN.BK) is 13.0%.

The Cost of Equity of Prinsiri PCL (PRIN.BK) is 6.30%.

The Cost of Debt of Prinsiri PCL (PRIN.BK) is 19.60%.

	Range	Selected
Cost of equity	5.40% - 7.20%	6.30%
Tax rate	22.60% - 22.80%	22.70%
Cost of debt	19.60% - 19.60%	19.60%
WACC	12.8% - 13.2%	13.0%

WACC

PRIN.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.38	0.43

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.40%	7.20%

Tax rate	22.60%	22.80%
Debt/Equity ratio	3.23	3.23
Cost of debt	19.60%	19.60%

After-tax WACC	12.8%	13.2%


Selected WACC	13.0%

PRIN.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 PRIN.BK:

cost_of_equity (6.30%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.38) + 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.