RICHY.BK
Richy Place 2002 PCL
Price:  
0.33 
THB
Volume:  
138,900
Thailand | Real Estate Management & Development

RICHY.BK WACC - Weighted Average Cost of Capital

The WACC of Richy Place 2002 PCL (RICHY.BK) is 11.1%.

The Cost of Equity of Richy Place 2002 PCL (RICHY.BK) is 15.1%.
The Cost of Debt of Richy Place 2002 PCL (RICHY.BK) is 13.1%.

RangeSelected
Cost of equity12.2% - 18.0%15.1%
Tax rate16.1% - 21.5%18.8%
Cost of debt6.6% - 19.6%13.1%
WACC6.4% - 15.7%11.1%
WACC

RICHY.BK WACC calculation

CategoryLowHigh
Long-term bond rate2.6%3.1%
Equity market risk premium7.4%8.4%
Adjusted beta1.291.71
Additional risk adjustments0.0%0.5%
Cost of equity12.2%18.0%
Tax rate16.1%21.5%
Debt/Equity ratio
6.36.3
Cost of debt6.6%19.6%
After-tax WACC6.4%15.7%
Selected WACC11.1%

RICHY.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 RICHY.BK:

cost_of_equity (15.10%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.29) + 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.