TCAP.BK WACC - Weighted Average Cost of Capital

The WACC of Thanachart Capital PCL (TCAP.BK) is 6.1%.

The Cost of Equity of Thanachart Capital PCL (TCAP.BK) is 8.90%.

The Cost of Debt of Thanachart Capital PCL (TCAP.BK) is 4.25%.

	Range	Selected
Cost of equity	7.80% - 10.00%	8.90%
Tax rate	10.00% - 10.90%	10.45%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.5% - 6.7%	6.1%

WACC

TCAP.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.71	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	10.00%

Tax rate	10.00%	10.90%
Debt/Equity ratio	1.28	1.28
Cost of debt	4.00%	4.50%

After-tax WACC	5.5%	6.7%


Selected WACC	6.1%

TCAP.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 TCAP.BK:

cost_of_equity (8.90%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.71) + 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.