UPF.BK WACC - Weighted Average Cost of Capital
The WACC of Union Pioneer PCL (UPF.BK) is 6.8%.
| Range | Selected | |
| Cost of equity | 6.1% - 7.8% | 6.95% |
| Tax rate | 15.5% - 17.5% | 16.5% |
| Cost of debt | 5.5% - 7.0% | 6.25% |
| WACC | 6.0% - 7.6% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.48 | 0.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 7.8% |
| Tax rate | 15.5% | 17.5% |
| Debt/Equity ratio | 0.12 | 0.12 |
| Cost of debt | 5.5% | 7.0% |
| After-tax WACC | 6.0% | 7.6% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| UPF.BK | Union Pioneer PCL | 0.12 | 0.28 | 0.25 |
| 514240.BO | Kush Industries Ltd | 0.66 | -0.66 | -0.43 |
| 516098.BO | Ventura Textiles Ltd | 0.34 | 0.23 | 0.18 |
| 532825.BO | Jagjanani Textiles Ltd | 0.24 | 0.25 | 0.21 |
| AFC.BK | Asia Fiber PCL | 0.41 | 0.87 | 0.65 |
| CPL.BK | CPL Group PCL | 3.27 | 2.02 | 0.55 |
| TPCORP.BK | Textile Prestige PCL | 0.02 | 0.36 | 0.36 |
| TTI.BK | Thai Textile Industry PCL | 0.39 | 0.09 | 0.07 |
| TTT.BK | Toray Textiles Thailand PCL | 0.1 | 0.21 | 0.2 |
| UT.BK | Union Textile Industries PCL | 0 | 0.23 | 0.23 |
| Low | High | |
| Unlevered beta | 0.2 | 0.24 |
| Relevered beta | 0.22 | 0.25 |
| Adjusted relevered beta | 0.48 | 0.5 |
UPF.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 UPF.BK:
cost_of_equity (6.95%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * 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.