TWZ.BK WACC - Weighted Average Cost of Capital

The WACC of TWZ Corporation PCL (TWZ.BK) is 10.6%.

The Cost of Equity of TWZ Corporation PCL (TWZ.BK) is 14.65%.

The Cost of Debt of TWZ Corporation PCL (TWZ.BK) is 13.60%.

	Range	Selected
Cost of equity	10.30% - 19.00%	14.65%
Tax rate	28.00% - 32.90%	30.45%
Cost of debt	4.60% - 22.60%	13.60%
WACC	5.1% - 16.1%	10.6%

WACC

TWZ.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	1.05	1.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	19.00%

Tax rate	28.00%	32.90%
Debt/Equity ratio	2.91	2.91
Cost of debt	4.60%	22.60%

After-tax WACC	5.1%	16.1%


Selected WACC	10.6%

TWZ.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 TWZ.BK:

cost_of_equity (14.65%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.05) + 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.