PROUD.BK
Proud Real Estate PCL
Price:  
1.21 
THB
Volume:  
132,900.00
Thailand | Construction & Engineering
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PROUD.BK WACC - Weighted Average Cost of Capital

The WACC of Proud Real Estate PCL (PROUD.BK) is 12.2%.

The Cost of Equity of Proud Real Estate PCL (PROUD.BK) is 23.30%.
The Cost of Debt of Proud Real Estate PCL (PROUD.BK) is 14.30%.

Range Selected
Cost of equity 17.30% - 29.30% 23.30%
Tax rate 21.90% - 25.30% 23.60%
Cost of debt 6.00% - 22.60% 14.30%
WACC 6.2% - 18.3% 12.2%
WACC

PROUD.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 1.98 3.05
Additional risk adjustments 0.0% 0.5%
Cost of equity 17.30% 29.30%
Tax rate 21.90% 25.30%
Debt/Equity ratio 7.57 7.57
Cost of debt 6.00% 22.60%
After-tax WACC 6.2% 18.3%
Selected WACC 12.2%

PROUD.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 PROUD.BK:

cost_of_equity (23.30%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.98) + 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.