TOPP.BK WACC - Weighted Average Cost of Capital
The WACC of Thai OPP PCL (TOPP.BK) is 8.5%.
| Range | Selected | |
| Cost of equity | 6.6% - 11.6% | 9.1% |
| Tax rate | 5.8% - 7.6% | 6.7% |
| Cost of debt | 4.0% - 5.2% | 4.6% |
| WACC | 6.3% - 10.8% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.54 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 11.6% |
| Tax rate | 5.8% | 7.6% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 4.0% | 5.2% |
| After-tax WACC | 6.3% | 10.8% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TOPP.BK | Thai OPP PCL | 0.14 | 0.14 | 0.12 |
| EMMBI.NS | Emmbi Industries Ltd | 0.78 | 2 | 1.15 |
| GLOCON.BK | Global Consumer PCL | 1.12 | 0.37 | 0.18 |
| PJW.BK | Panjawattana Plastic PCL | 1.18 | 0.47 | 0.22 |
| PPHB.KL | Public Packages Holdings Bhd | 0.03 | 0.94 | 0.91 |
| PTL.BK | Polyplex Thailand PCL | 0.33 | 1.07 | 0.81 |
| SPACK.BK | S Pack & Print PCL | 1.12 | 0.66 | 0.32 |
| TCOAT.BK | Thai Coating Industrial PCL | 0.02 | 0.05 | 0.04 |
| TOMYPAK.KL | Tomypak Holdings Bhd | 0.51 | 1.24 | 0.84 |
| TPLAS.BK | Thai Plastic Industrial (1994) PCL | 0.01 | 0.84 | 0.83 |
| Low | High | |
| Unlevered beta | 0.28 | 0.82 |
| Relevered beta | 0.31 | 0.93 |
| Adjusted relevered beta | 0.54 | 0.95 |
TOPP.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 TOPP.BK:
cost_of_equity (9.10%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.54) + 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.