RCI.BK WACC - Weighted Average Cost of Capital
The WACC of Royal Ceramic Industry PCL (RCI.BK) is 8.9%.
| Range | Selected | |
| Cost of equity | 7.9% - 10.4% | 9.15% |
| Tax rate | 8.0% - 16.1% | 12.05% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.7% - 10.1% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.79 | 0.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 10.4% |
| Tax rate | 8.0% | 16.1% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.7% | 10.1% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| RCI.BK | Royal Ceramic Industry PCL | 0.05 | 0.02 | 0.02 |
| 5287.T | Ito Yogyo Co Ltd | 0.49 | 0.7 | 0.49 |
| DCC.BK | Dynasty Ceramic PCL | 0.16 | 0.59 | 0.52 |
| PPP.BK | Premier Products PCL | 0.63 | 1.01 | 0.65 |
| SKN.BK | S Kijchai Enterprise PCL | 0.03 | -0.01 | -0.01 |
| SUPERLN.KL | Superlon Holdings Bhd | 0.2 | 0.89 | 0.76 |
| TWP.BK | Thai Wire Products PCL | 0.99 | 0.81 | 0.44 |
| UMI.BK | Union Mosaic Industry PCL | 0.84 | 0.71 | 0.41 |
| VNG.BK | Vanachai Group PCL | 2.45 | 0.43 | 0.14 |
| WIIK.BK | WIIK PCL | 0.5 | 0.68 | 0.48 |
| Low | High | |
| Unlevered beta | 0.43 | 0.48 |
| Relevered beta | 0.69 | 0.84 |
| Adjusted relevered beta | 0.79 | 0.89 |
RCI.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 RCI.BK:
cost_of_equity (9.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.80%) * adjusted_beta (0.79) + 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.