THRE.BK WACC - Weighted Average Cost of Capital
The WACC of Thai Reinsurance PCL (THRE.BK) is 11.2%.
| Range | Selected | |
| Cost of equity | 9.7% - 12.8% | 11.25% |
| Tax rate | 16.7% - 18.4% | 17.55% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.6% - 12.7% | 11.2% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.96 | 1.1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.7% | 12.8% |
| Tax rate | 16.7% | 18.4% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.6% | 12.7% |
| Selected WACC | 11.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| THRE.BK | Thai Reinsurance PCL | 0.01 | 1.15 | 1.14 |
| 1508.HK | China Reinsurance Group Corp | 0.31 | 1.71 | 1.37 |
| 8200.SR | Saudi Re for Cooperative Reinsurance Company SJSC | 0.01 | 1.34 | 1.33 |
| 8300.SR | Wataniya Insurance Company SJSC | 0.01 | 1.65 | 1.64 |
| AYUD.BK | Allianz Ayudhya Capital PCL | 0.01 | 0.17 | 0.17 |
| MREI.JK | Maskapai Reasuransi Indonesia Tbk PT | 0.01 | 1.14 | 1.13 |
| NKI.BK | Navakij Insurance PCL | 0.04 | 0.3 | 0.29 |
| NSI.BK | Nam Seng Insurance PCL | 0 | 0.7 | 0.7 |
| THREL.BK | Thaire Life Assurance PCL | 0.01 | 1.09 | 1.08 |
| TVI.BK | Thaivivat Insurance PCL | 0 | 0.59 | 0.59 |
| Low | High | |
| Unlevered beta | 0.93 | 1.14 |
| Relevered beta | 0.94 | 1.15 |
| Adjusted relevered beta | 0.96 | 1.1 |
THRE.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 THRE.BK:
cost_of_equity (11.25%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.96) + 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.