TIPCO.BK WACC - Weighted Average Cost of Capital

The WACC of Tipco Foods PCL (TIPCO.BK) is 6.8%.

The Cost of Equity of Tipco Foods PCL (TIPCO.BK) is 7.45%.

The Cost of Debt of Tipco Foods PCL (TIPCO.BK) is 5.50%.

	Range	Selected
Cost of equity	6.30% - 8.60%	7.45%
Tax rate	4.30% - 9.20%	6.75%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.6% - 8.0%	6.8%

WACC

TIPCO.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.5	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	8.60%

Tax rate	4.30%	9.20%
Debt/Equity ratio	0.36	0.36
Cost of debt	4.00%	7.00%

After-tax WACC	5.6%	8.0%


Selected WACC	6.8%

TIPCO.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 TIPCO.BK:

cost_of_equity (7.45%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.5) + 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.