TM.BK WACC - Weighted Average Cost of Capital
The WACC of Techno Medical PCL (TM.BK) is 9.7%.
| Range | Selected | |
| Cost of equity | 8.9% - 12.8% | 10.85% |
| Tax rate | 29.1% - 34.4% | 31.75% |
| Cost of debt | 4.2% - 22.6% | 13.4% |
| WACC | 5.4% - 14.0% | 9.7% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.85 | 1.1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.9% | 12.8% |
| Tax rate | 29.1% | 34.4% |
| Debt/Equity ratio | 1.5 | 1.5 |
| Cost of debt | 4.2% | 22.6% |
| After-tax WACC | 5.4% | 14.0% |
| Selected WACC | 9.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TM.BK | Techno Medical PCL | 1.5 | 0.49 | 0.25 |
| 3386.T | Cosmo Bio Co Ltd | 0 | 0.34 | 0.34 |
| 673.HK | China Health Group Ltd | 0.03 | 0.44 | 0.43 |
| 8372.HK | Grand Brilliance Group Holdings Ltd | 0.04 | 0.12 | 0.12 |
| BALAXI.NS | Balaxi Pharmaceuticals Ltd | 0.99 | 1.17 | 0.71 |
| BIZ.BK | Business Alignment PCL | 0.09 | 0.52 | 0.49 |
| EFORL.BK | E for L Aim PCL | 0.63 | 1.57 | 1.11 |
| IRRA.JK | Itama Ranoraya PT | 0.91 | 0.47 | 0.29 |
| JVC.VN | Japan Vietnam Medical Instrument JSC | 0.1 | 1.36 | 1.27 |
| QTM.AX | Quantum Health Group Ltd | 0.08 | 1.23 | 1.17 |
| Low | High | |
| Unlevered beta | 0.39 | 0.58 |
| Relevered beta | 0.78 | 1.15 |
| Adjusted relevered beta | 0.85 | 1.1 |
TM.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 TM.BK:
cost_of_equity (10.85%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.85) + 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.