THANA.BK WACC - Weighted Average Cost of Capital

The WACC of Thanasiri Group PCL (THANA.BK) is 6.2%.

The Cost of Equity of Thanasiri Group PCL (THANA.BK) is 11.20%.

The Cost of Debt of Thanasiri Group PCL (THANA.BK) is 4.95%.

	Range	Selected
Cost of equity	9.30% - 13.10%	11.20%
Tax rate	23.50% - 27.80%	25.65%
Cost of debt	4.20% - 5.70%	4.95%
WACC	5.3% - 7.1%	6.2%

WACC

THANA.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.9	1.13

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	13.10%

Tax rate	23.50%	27.80%
Debt/Equity ratio	1.98	1.98
Cost of debt	4.20%	5.70%

After-tax WACC	5.3%	7.1%


Selected WACC	6.2%

THANA.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 THANA.BK:

cost_of_equity (11.20%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.9) + 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.