TMILL.BK WACC - Weighted Average Cost of Capital
The WACC of T S Flour Mill PCL (TMILL.BK) is 5.8%.
| Range | Selected | |
| Cost of equity | 6.2% - 8.0% | 7.1% |
| Tax rate | 20.6% - 20.7% | 20.65% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.1% - 6.5% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.49 | 0.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 8.0% |
| Tax rate | 20.6% | 20.7% |
| Debt/Equity ratio | 0.53 | 0.53 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.1% | 6.5% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TMILL.BK | T S Flour Mill PCL | 0.53 | 0.28 | 0.2 |
| BR.BK | Bangkok Ranch PCL | 3.5 | 0.18 | 0.05 |
| CHOTI.BK | Kiang Huat Sea Gull Trading Frozen Food PCL | 2.76 | 0.69 | 0.22 |
| F&D.BK | Food and Drinks PCL | 0.02 | 1.01 | 0.99 |
| KASET.BK | Thai Ha PCL | 1.93 | 1.57 | 0.62 |
| LST.BK | Lam Soon Thailand PCL | 0.25 | 0.2 | 0.17 |
| SFP.BK | Siam Food Products PCL | 0.02 | 0.17 | 0.16 |
| SORKON.BK | S Khonkaen Foods PCL | 0.96 | 0.12 | 0.07 |
| TC.BK | Tropical Canning Thailand PCL | 0.29 | -0.1 | -0.08 |
| UPOIC.BK | United Palm Oil Industry PCL | 0.02 | 0.43 | 0.42 |
| Low | High | |
| Unlevered beta | 0.17 | 0.21 |
| Relevered beta | 0.24 | 0.3 |
| Adjusted relevered beta | 0.49 | 0.53 |
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 (7.10%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.49) + 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.