TPOLY.BK WACC - Weighted Average Cost of Capital

The WACC of Thai Polycons PCL (TPOLY.BK) is 10.1%.

The Cost of Equity of Thai Polycons PCL (TPOLY.BK) is 137.60%.

The Cost of Debt of Thai Polycons PCL (TPOLY.BK) is 9.70%.

	Range	Selected
Cost of equity	86.60% - 188.60%	137.60%
Tax rate	17.20% - 20.60%	18.90%
Cost of debt	5.10% - 14.30%	9.70%
WACC	5.7% - 14.5%	10.1%

WACC

TPOLY.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	11.3	21.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	86.60%	188.60%

Tax rate	17.20%	20.60%
Debt/Equity ratio	55.89	55.89
Cost of debt	5.10%	14.30%

After-tax WACC	5.7%	14.5%


Selected WACC	10.1%

TPOLY.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 TPOLY.BK:

cost_of_equity (137.60%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (11.3) + 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.