TMILL.BK WACC - Weighted Average Cost of Capital

The WACC of T S Flour Mill PCL (TMILL.BK) is 5.7%.

The Cost of Equity of T S Flour Mill PCL (TMILL.BK) is 6.90%.

The Cost of Debt of T S Flour Mill PCL (TMILL.BK) is 4.40%.

	Range	Selected
Cost of equity	5.90% - 7.90%	6.90%
Tax rate	20.60% - 20.70%	20.65%
Cost of debt	4.00% - 4.80%	4.40%
WACC	4.9% - 6.4%	5.7%

WACC

TMILL.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.45	0.52

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.90%	7.90%

Tax rate	20.60%	20.70%
Debt/Equity ratio	0.57	0.57
Cost of debt	4.00%	4.80%

After-tax WACC	4.9%	6.4%


Selected WACC	5.7%

TMILL.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 TMILL.BK:

cost_of_equity (6.90%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.45) + 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.