TNR.BK
Thai Nippon Rubber Industry PCL
Price:  
6.95 
THB
Volume:  
68,400
Thailand | Personal Products

TNR.BK WACC - Weighted Average Cost of Capital

The WACC of Thai Nippon Rubber Industry PCL (TNR.BK) is 8.7%.

The Cost of Equity of Thai Nippon Rubber Industry PCL (TNR.BK) is 9.85%.
The Cost of Debt of Thai Nippon Rubber Industry PCL (TNR.BK) is 4.25%.

RangeSelected
Cost of equity8.7% - 11.0%9.85%
Tax rate10.6% - 13.2%11.9%
Cost of debt4.0% - 4.5%4.25%
WACC7.7% - 9.6%8.7%
WACC

TNR.BK WACC calculation

CategoryLowHigh
Long-term bond rate2.6%3.1%
Equity market risk premium7.4%8.4%
Adjusted beta0.830.88
Additional risk adjustments0.0%0.5%
Cost of equity8.7%11.0%
Tax rate10.6%13.2%
Debt/Equity ratio
0.240.24
Cost of debt4.0%4.5%
After-tax WACC7.7%9.6%
Selected WACC8.7%

TNR.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 TNR.BK:

cost_of_equity (9.85%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.83) + 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.