TCC.BK WACC - Weighted Average Cost of Capital

The WACC of Thai Capital Corporation PCL (TCC.BK) is 7.4%.

The Cost of Equity of Thai Capital Corporation PCL (TCC.BK) is 9.35%.

The Cost of Debt of Thai Capital Corporation PCL (TCC.BK) is 6.50%.

	Range	Selected
Cost of equity	8.10% - 10.60%	9.35%
Tax rate	22.20% - 25.70%	23.95%
Cost of debt	6.20% - 6.80%	6.50%
WACC	6.7% - 8.2%	7.4%

WACC

TCC.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.75	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.10%	10.60%

Tax rate	22.20%	25.70%
Debt/Equity ratio	0.75	0.75
Cost of debt	6.20%	6.80%

After-tax WACC	6.7%	8.2%


Selected WACC	7.4%

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 (9.35%) = 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.