RWI.BK
Rayong Wire Industries PCL
Price:  
0.28 
THB
Volume:  
698,800.00
Thailand | Metals & Mining
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

RWI.BK WACC - Weighted Average Cost of Capital

The WACC of Rayong Wire Industries PCL (RWI.BK) is 6.2%.

The Cost of Equity of Rayong Wire Industries PCL (RWI.BK) is 6.65%.
The Cost of Debt of Rayong Wire Industries PCL (RWI.BK) is 5.65%.

Range Selected
Cost of equity 5.20% - 8.10% 6.65%
Tax rate 0.10% - 2.20% 1.15%
Cost of debt 4.30% - 7.00% 5.65%
WACC 4.9% - 7.6% 6.2%
WACC

RWI.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.36 0.53
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.20% 8.10%
Tax rate 0.10% 2.20%
Debt/Equity ratio 0.62 0.62
Cost of debt 4.30% 7.00%
After-tax WACC 4.9% 7.6%
Selected WACC 6.2%

RWI.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 RWI.BK:

cost_of_equity (6.65%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.36) + 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.