PTTGC.BK WACC - Weighted Average Cost of Capital

The WACC of PTT Global Chemical PCL (PTTGC.BK) is 6.4%.

The Cost of Equity of PTT Global Chemical PCL (PTTGC.BK) is 12.50%.

The Cost of Debt of PTT Global Chemical PCL (PTTGC.BK) is 5.50%.

	Range	Selected
Cost of equity	7.60% - 17.40%	12.50%
Tax rate	17.60% - 21.30%	19.45%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.4% - 8.5%	6.4%

WACC

PTTGC.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.68	1.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	17.40%

Tax rate	17.60%	21.30%
Debt/Equity ratio	2.96	2.96
Cost of debt	4.00%	7.00%

After-tax WACC	4.4%	8.5%


Selected WACC	6.4%

PTTGC.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 PTTGC.BK:

cost_of_equity (12.50%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.68) + 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.