PTT.BK
PTT PCL
Price:  
30.25 
THB
Volume:  
16,534,800
Thailand | Oil, Gas & Consumable Fuels

PTT.BK WACC - Weighted Average Cost of Capital

The WACC of PTT PCL (PTT.BK) is 6.5%.

The Cost of Equity of PTT PCL (PTT.BK) is 11.45%.
The Cost of Debt of PTT PCL (PTT.BK) is 4.25%.

RangeSelected
Cost of equity8.2% - 14.7%11.45%
Tax rate36.1% - 37.8%36.95%
Cost of debt4.0% - 4.5%4.25%
WACC5.0% - 8.0%6.5%
WACC

PTT.BK WACC calculation

CategoryLowHigh
Long-term bond rate2.6%3.1%
Equity market risk premium7.4%8.4%
Adjusted beta0.761.32
Additional risk adjustments0.0%0.5%
Cost of equity8.2%14.7%
Tax rate36.1%37.8%
Debt/Equity ratio
1.281.28
Cost of debt4.0%4.5%
After-tax WACC5.0%8.0%
Selected WACC6.5%

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.