RT.BK WACC - Weighted Average Cost of Capital

The WACC of Right Tunnelling PCL (RT.BK) is 12.9%.

The Cost of Equity of Right Tunnelling PCL (RT.BK) is 28.35%.

The Cost of Debt of Right Tunnelling PCL (RT.BK) is 12.90%.

	Range	Selected
Cost of equity	23.00% - 33.70%	28.35%
Tax rate	17.50% - 18.40%	17.95%
Cost of debt	6.20% - 19.60%	12.90%
WACC	7.5% - 18.3%	12.9%

WACC

RT.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	2.75	3.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	23.00%	33.70%

Tax rate	17.50%	18.40%
Debt/Equity ratio	6.44	6.44
Cost of debt	6.20%	19.60%

After-tax WACC	7.5%	18.3%


Selected WACC	12.9%

RT.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 RT.BK:

cost_of_equity (28.35%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (2.75) + 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.