TAE.BK WACC - Weighted Average Cost of Capital

The WACC of Thai Agro Energy PCL (TAE.BK) is 10.3%.

The Cost of Equity of Thai Agro Energy PCL (TAE.BK) is 13.30%.

The Cost of Debt of Thai Agro Energy PCL (TAE.BK) is 11.80%.

	Range	Selected
Cost of equity	11.60% - 15.00%	13.30%
Tax rate	18.70% - 20.40%	19.55%
Cost of debt	4.00% - 19.60%	11.80%
WACC	5.3% - 15.4%	10.3%

WACC

TAE.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	1.22	1.35

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.60%	15.00%

Tax rate	18.70%	20.40%
Debt/Equity ratio	3.16	3.16
Cost of debt	4.00%	19.60%

After-tax WACC	5.3%	15.4%


Selected WACC	10.3%

TAE.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 TAE.BK:

cost_of_equity (13.30%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.22) + 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.