THRE.BK
Thai Reinsurance PCL
Price:  
0.38 
THB
Volume:  
327,000.00
Thailand | Insurance
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THRE.BK WACC - Weighted Average Cost of Capital

The WACC of Thai Reinsurance PCL (THRE.BK) is 11.1%.

The Cost of Equity of Thai Reinsurance PCL (THRE.BK) is 11.20%.
The Cost of Debt of Thai Reinsurance PCL (THRE.BK) is 5.00%.

Range Selected
Cost of equity 9.70% - 12.70% 11.20%
Tax rate 16.70% - 18.40% 17.55%
Cost of debt 5.00% - 5.00% 5.00%
WACC 9.6% - 12.6% 11.1%
WACC

THRE.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.96 1.09
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.70% 12.70%
Tax rate 16.70% 18.40%
Debt/Equity ratio 0.01 0.01
Cost of debt 5.00% 5.00%
After-tax WACC 9.6% 12.6%
Selected WACC 11.1%

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 (11.20%) = 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.