TSR.BK WACC - Weighted Average Cost of Capital

The WACC of Thiensurat PCL (TSR.BK) is 6.6%.

The Cost of Equity of Thiensurat PCL (TSR.BK) is 16.50%.

The Cost of Debt of Thiensurat PCL (TSR.BK) is 7.30%.

	Range	Selected
Cost of equity	9.10% - 23.90%	16.50%
Tax rate	18.40% - 19.20%	18.80%
Cost of debt	7.00% - 7.60%	7.30%
WACC	5.9% - 7.2%	6.6%

WACC

TSR.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.88	2.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	23.90%

Tax rate	18.40%	19.20%
Debt/Equity ratio	15.75	15.75
Cost of debt	7.00%	7.60%

After-tax WACC	5.9%	7.2%


Selected WACC	6.6%

TSR.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 TSR.BK:

cost_of_equity (16.50%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.88) + 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.