ROCK.BK
Rockworth PCL
Price:  
10.20 
THB
Volume:  
8,100.00
Thailand | Commercial Services & Supplies
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ROCK.BK WACC - Weighted Average Cost of Capital

The WACC of Rockworth PCL (ROCK.BK) is 7.6%.

The Cost of Equity of Rockworth PCL (ROCK.BK) is 11.75%.
The Cost of Debt of Rockworth PCL (ROCK.BK) is 4.85%.

Range Selected
Cost of equity 8.40% - 15.10% 11.75%
Tax rate 7.00% - 10.90% 8.95%
Cost of debt 4.80% - 4.90% 4.85%
WACC 6.2% - 9.1% 7.6%
WACC

ROCK.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.79 1.36
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 15.10%
Tax rate 7.00% 10.90%
Debt/Equity ratio 1.26 1.26
Cost of debt 4.80% 4.90%
After-tax WACC 6.2% 9.1%
Selected WACC 7.6%

ROCK.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 ROCK.BK:

cost_of_equity (11.75%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * 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.