TIPCO.BK
Tipco Foods PCL
Price:  
9.40 
THB
Volume:  
136,900.00
Thailand | Food Products
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TIPCO.BK WACC - Weighted Average Cost of Capital

The WACC of Tipco Foods PCL (TIPCO.BK) is 6.9%.

The Cost of Equity of Tipco Foods PCL (TIPCO.BK) is 7.50%.
The Cost of Debt of Tipco Foods PCL (TIPCO.BK) is 5.50%.

Range Selected
Cost of equity 6.30% - 8.70% 7.50%
Tax rate 4.30% - 9.20% 6.75%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.6% - 8.1% 6.9%
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 0.61
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 8.70%
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% 8.1%
Selected WACC 6.9%

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 (7.50%) = 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.