PTT.BK WACC - Weighted Average Cost of Capital
The WACC of PTT PCL (PTT.BK) is 6.5%.
| Range | Selected | |
| Cost of equity | 8.2% - 14.7% | 11.45% |
| Tax rate | 36.1% - 37.8% | 36.95% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.0% - 8.0% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.76 | 1.32 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.2% | 14.7% |
| Tax rate | 36.1% | 37.8% |
| Debt/Equity ratio | 1.28 | 1.28 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.0% | 8.0% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PTT.BK | PTT PCL | 1.28 | 0.47 | 0.26 |
| BANPU.BK | Banpu PCL | 4.82 | 1.6 | 0.4 |
| LKOH.ME | NK Lukoil PAO | 0.07 | 0.02 | 0.02 |
| ONGC.NS | Oil and Natural Gas Corporation Ltd | 0.5 | 1.15 | 0.88 |
| PETDAG.KL | Petronas Dagangan Bhd | 0.01 | 0.9 | 0.89 |
| SEAOIL.BK | Sea Oil PCL | 0.05 | 0.31 | 0.3 |
| SIBN.ME | Gazprom Neft' PAO | 0.24 | -0.11 | -0.1 |
| SPRC.BK | Star Petroleum Refining PCL | 0.43 | 1.11 | 0.88 |
| VEA.AX | Viva Energy Group Ltd | 1.5 | 1.51 | 0.78 |
| ZEL.NZ | Z Energy Ltd | 0.55 | 1.19 | 0.89 |
| Low | High | |
| Unlevered beta | 0.36 | 0.82 |
| Relevered beta | 0.64 | 1.48 |
| Adjusted relevered beta | 0.76 | 1.32 |
PTT.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 PTT.BK:
cost_of_equity (11.45%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.76) + 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.