TMI.BK WACC - Weighted Average Cost of Capital

The WACC of Teera Mongkol Industry PCL (TMI.BK) is 6.8%.

The Cost of Equity of Teera Mongkol Industry PCL (TMI.BK) is 9.50%.

The Cost of Debt of Teera Mongkol Industry PCL (TMI.BK) is 6.25%.

	Range	Selected
Cost of equity	8.10% - 10.90%	9.50%
Tax rate	21.10% - 30.00%	25.55%
Cost of debt	6.20% - 6.30%	6.25%
WACC	6.3% - 7.3%	6.8%

WACC

TMI.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.74	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.10%	10.90%

Tax rate	21.10%	30.00%
Debt/Equity ratio	1.21	1.21
Cost of debt	6.20%	6.30%

After-tax WACC	6.3%	7.3%


Selected WACC	6.8%

TMI.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 TMI.BK:

cost_of_equity (9.50%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.74) + 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.