TGH.BK
Thai Group Holdings PCL
Price:  
12.2 
THB
Volume:  
400
Thailand | Insurance

TGH.BK WACC - Weighted Average Cost of Capital

The WACC of Thai Group Holdings PCL (TGH.BK) is 5.4%.

The Cost of Equity of Thai Group Holdings PCL (TGH.BK) is 7.85%.
The Cost of Debt of Thai Group Holdings PCL (TGH.BK) is 5%.

RangeSelected
Cost of equity6.8% - 8.9%7.85%
Tax rate15.3% - 21.9%18.6%
Cost of debt5.0% - 5.0%5%
WACC5.1% - 5.6%5.4%
WACC

TGH.BK WACC calculation

CategoryLowHigh
Long-term bond rate2.6%3.1%
Equity market risk premium7.4%8.4%
Adjusted beta0.570.63
Additional risk adjustments0.0%0.5%
Cost of equity6.8%8.9%
Tax rate15.3%21.9%
Debt/Equity ratio
1.921.92
Cost of debt5.0%5.0%
After-tax WACC5.1%5.6%
Selected WACC5.4%

TGH.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 TGH.BK:

cost_of_equity (7.85%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.57) + 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.