UPA.BK WACC - Weighted Average Cost of Capital

The WACC of United Power of Asia PCL (UPA.BK) is 47.2%.

The Cost of Equity of United Power of Asia PCL (UPA.BK) is 8.55%.

The Cost of Debt of United Power of Asia PCL (UPA.BK) is 150.65%.

	Range	Selected
Cost of equity	6.50% - 10.60%	8.55%
Tax rate	4.00% - 15.40%	9.70%
Cost of debt	7.00% - 294.30%	150.65%
WACC	6.5% - 87.8%	47.2%

WACC

UPA.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.48	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.50%	10.60%

Tax rate	4.00%	15.40%
Debt/Equity ratio	0.48	0.48
Cost of debt	7.00%	294.30%

After-tax WACC	6.5%	87.8%


Selected WACC	47.2%

UPA.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 UPA.BK:

cost_of_equity (8.55%) = risk_free_rate (2.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.48) + 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.