TRUBB.BK WACC - Weighted Average Cost of Capital

The WACC of Thai Rubber Latex Group PCL (TRUBB.BK) is 11.6%.

The Cost of Equity of Thai Rubber Latex Group PCL (TRUBB.BK) is 18.50%.

The Cost of Debt of Thai Rubber Latex Group PCL (TRUBB.BK) is 13.60%.

	Range	Selected
Cost of equity	14.40% - 22.60%	18.50%
Tax rate	15.60% - 20.90%	18.25%
Cost of debt	4.60% - 22.60%	13.60%
WACC	4.9% - 18.3%	11.6%

WACC

TRUBB.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	1.59	2.26

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.40%	22.60%

Tax rate	15.60%	20.90%
Debt/Equity ratio	9.27	9.27
Cost of debt	4.60%	22.60%

After-tax WACC	4.9%	18.3%


Selected WACC	11.6%

TRUBB.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 TRUBB.BK:

cost_of_equity (18.50%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.59) + 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.