RBF.BK WACC - Weighted Average Cost of Capital

The WACC of R&B Food Supply PCL (RBF.BK) is 8.4%.

The Cost of Equity of R&B Food Supply PCL (RBF.BK) is 8.50%.

The Cost of Debt of R&B Food Supply PCL (RBF.BK) is 4.55%.

	Range	Selected
Cost of equity	7.00% - 10.00%	8.50%
Tax rate	18.60% - 19.00%	18.80%
Cost of debt	4.00% - 5.10%	4.55%
WACC	6.9% - 9.9%	8.4%

WACC

RBF.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.6	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.00%	10.00%

Tax rate	18.60%	19.00%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.00%	5.10%

After-tax WACC	6.9%	9.9%


Selected WACC	8.4%

RBF.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 RBF.BK:

cost_of_equity (8.50%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.6) + 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.