TNPC.BK WACC - Weighted Average Cost of Capital
The WACC of Thai Nam Plastic PCL (TNPC.BK) is 9.1%.
| Range | Selected | |
| Cost of equity | 11.2% - 19.0% | 15.1% |
| Tax rate | 20.0% - 40.7% | 30.35% |
| Cost of debt | 6.1% - 7.0% | 6.55% |
| WACC | 7.6% - 10.5% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 1.17 | 1.83 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.2% | 19.0% |
| Tax rate | 20.0% | 40.7% |
| Debt/Equity ratio | 1.33 | 1.33 |
| Cost of debt | 6.1% | 7.0% |
| After-tax WACC | 7.6% | 10.5% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TNPC.BK | Thai Nam Plastic PCL | 1.33 | 0.48 | 0.25 |
| EASON.BK | Eason & Co PCL | 0.04 | 0.66 | 0.64 |
| EPG.BK | Eastern Polymer Group PCL | 0.7 | 1.64 | 1.09 |
| PREMEXPLN.NS | Premier Explosives Ltd | 0.02 | 1.69 | 1.66 |
| SUTHA.BK | Golden Lime PCL | 0.9 | 0.21 | 0.12 |
| TFI.BK | Thai Film Industries PCL | 0.31 | 1.5 | 1.23 |
| TOA.BK | TOA Paint Thailand PCL | 0.06 | 1.32 | 1.27 |
| TPA.BK | Thai Poly Acrylic PCL | 0.03 | 1.4 | 1.37 |
| UBIS.BK | UBIS Asia PCL | 0.89 | 1.05 | 0.64 |
| UP.BK | Union Plastic PCL | 0 | 0.59 | 0.58 |
| Low | High | |
| Unlevered beta | 0.64 | 1.15 |
| Relevered beta | 1.25 | 2.24 |
| Adjusted relevered beta | 1.17 | 1.83 |
TNPC.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 TNPC.BK:
cost_of_equity (15.10%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.17) + 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.