The WACC of Thai Nippon Rubber Industry PCL (TNR.BK) is 8.7%.
Range | Selected | |
Cost of equity | 8.7% - 11.0% | 9.85% |
Tax rate | 10.6% - 13.2% | 11.9% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 7.7% - 9.6% | 8.7% |
Category | Low | High |
Long-term bond rate | 2.6% | 3.1% |
Equity market risk premium | 7.4% | 8.4% |
Adjusted beta | 0.83 | 0.88 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.7% | 11.0% |
Tax rate | 10.6% | 13.2% |
Debt/Equity ratio | 0.24 | 0.24 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 7.7% | 9.6% |
Selected WACC | 8.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
TNR.BK | Thai Nippon Rubber Industry PCL | 0.24 | 0.42 | 0.35 |
003350.KS | Hankook Cosmetics Manufacturing Co Ltd | 0.06 | 0.67 | 0.64 |
234690.KQ | Green Cross WellBeing Corp | 0.19 | 0.84 | 0.72 |
4918.T | Ivy Cosmetics Corp | 0.11 | 0.64 | 0.58 |
5194.T | Sagami Rubber Industries Co Ltd | 0.56 | 0.56 | 0.37 |
6666.TW | Luo Lih Fen Holding Co Ltd | 0.03 | 0.83 | 0.8 |
APCO.BK | Asian Phytoceuticals PCL | 0.01 | 0.65 | 0.64 |
DDD.BK | Do Day Dream PCL | 0.04 | 0.56 | 0.54 |
DOD.BK | DOD Biotech PCL | 0.32 | 1.04 | 0.81 |
KAMART.BK | Karmarts PCL | 0.07 | 0.88 | 0.83 |
Low | High | |
Unlevered beta | 0.61 | 0.67 |
Relevered beta | 0.75 | 0.82 |
Adjusted relevered beta | 0.83 | 0.88 |
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.