TCC.BK WACC - Weighted Average Cost of Capital
The WACC of Thai Capital Corporation PCL (TCC.BK) is 7.5%.
| Range | Selected | |
| Cost of equity | 8.2% - 11.3% | 9.75% |
| Tax rate | 22.2% - 25.7% | 23.95% |
| Cost of debt | 6.2% - 6.8% | 6.5% |
| WACC | 6.6% - 8.4% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.75 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.2% | 11.3% |
| Tax rate | 22.2% | 25.7% |
| Debt/Equity ratio | 0.87 | 0.87 |
| Cost of debt | 6.2% | 6.8% |
| After-tax WACC | 6.6% | 8.4% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TCC.BK | Thai Capital Corporation PCL | 0.87 | 1.18 | 0.71 |
| ALLA.BK | Alla PCL | 0.05 | 0.42 | 0.4 |
| GIFT.BK | Gratitude Infinite PCL | 0.2 | 1.63 | 1.41 |
| HARN.BK | Harn Engineering Solutions PCL | 0.09 | 0.04 | 0.04 |
| MGT.BK | Megachem Thailand PCL | 0.21 | 0.52 | 0.44 |
| PPM.BK | Porn Prom Metal PCL | 1.14 | 1.23 | 0.65 |
| SE.BK | SiamEast Solutions PCL | 0.05 | 1.12 | 1.08 |
| THMUI.BK | Thai Mui Corporation PCL | 1.72 | 0.56 | 0.24 |
| UAC.BK | UAC Global PCL | 0.4 | 0.45 | 0.35 |
| UMS.BK | Unique Mining Services PCL | 0.99 | -0.22 | -0.12 |
| Low | High | |
| Unlevered beta | 0.38 | 0.53 |
| Relevered beta | 0.63 | 0.88 |
| Adjusted relevered beta | 0.75 | 0.92 |
TCC.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 TCC.BK:
cost_of_equity (9.75%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.75) + 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.