TPOLY.BK WACC - Weighted Average Cost of Capital

The WACC of Thai Polycons PCL (TPOLY.BK) is 9.6%.

The Cost of Equity of Thai Polycons PCL (TPOLY.BK) is 103.15%.

The Cost of Debt of Thai Polycons PCL (TPOLY.BK) is 6.30%.

	Range	Selected
Cost of equity	85.90% - 120.40%	103.15%
Tax rate	12.50% - 16.10%	14.30%
Cost of debt	4.80% - 7.80%	6.30%
WACC	7.7% - 11.5%	9.6%

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	11.21	13.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	85.90%	120.40%

Tax rate	12.50%	16.10%
Debt/Equity ratio	22.1	22.1
Cost of debt	4.80%	7.80%

After-tax WACC	7.7%	11.5%


Selected WACC	9.6%

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 (103.15%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (11.21) + 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.