TPA.BK WACC - Weighted Average Cost of Capital

The WACC of Thai Poly Acrylic PCL (TPA.BK) is 8.8%.

The Cost of Equity of Thai Poly Acrylic PCL (TPA.BK) is 8.85%.

The Cost of Debt of Thai Poly Acrylic PCL (TPA.BK) is 6.70%.

	Range	Selected
Cost of equity	7.80% - 9.90%	8.85%
Tax rate	14.60% - 19.80%	17.20%
Cost of debt	6.40% - 7.00%	6.70%
WACC	7.7% - 9.8%	8.8%

WACC

TPA.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.7	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	9.90%

Tax rate	14.60%	19.80%
Debt/Equity ratio	0.03	0.03
Cost of debt	6.40%	7.00%

After-tax WACC	7.7%	9.8%


Selected WACC	8.8%

TPA.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 TPA.BK:

cost_of_equity (8.85%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.7) + 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.