ROJNA.BK WACC - Weighted Average Cost of Capital

The WACC of Rojana Industrial Park PCL (ROJNA.BK) is 11.4%.

The Cost of Equity of Rojana Industrial Park PCL (ROJNA.BK) is 13.25%.

The Cost of Debt of Rojana Industrial Park PCL (ROJNA.BK) is 11.85%.

	Range	Selected
Cost of equity	10.40% - 16.10%	13.25%
Tax rate	11.00% - 12.60%	11.80%
Cost of debt	4.10% - 19.60%	11.85%
WACC	6.0% - 16.7%	11.4%

WACC

ROJNA.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	1.06	1.48

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	16.10%

Tax rate	11.00%	12.60%
Debt/Equity ratio	1.85	1.85
Cost of debt	4.10%	19.60%

After-tax WACC	6.0%	16.7%


Selected WACC	11.4%

ROJNA.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 ROJNA.BK:

cost_of_equity (13.25%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.06) + 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.