UPF.BK
Union Pioneer PCL
Price:  
27 
THB
Volume:  
500
Thailand | Textiles, Apparel & Luxury Goods

UPF.BK WACC - Weighted Average Cost of Capital

The WACC of Union Pioneer PCL (UPF.BK) is 6.8%.

The Cost of Equity of Union Pioneer PCL (UPF.BK) is 6.95%.
The Cost of Debt of Union Pioneer PCL (UPF.BK) is 6.25%.

RangeSelected
Cost of equity6.1% - 7.8%6.95%
Tax rate15.5% - 17.5%16.5%
Cost of debt5.5% - 7.0%6.25%
WACC6.0% - 7.6%6.8%
WACC

UPF.BK WACC calculation

CategoryLowHigh
Long-term bond rate2.6%3.1%
Equity market risk premium7.4%8.4%
Adjusted beta0.480.5
Additional risk adjustments0.0%0.5%
Cost of equity6.1%7.8%
Tax rate15.5%17.5%
Debt/Equity ratio
0.120.12
Cost of debt5.5%7.0%
After-tax WACC6.0%7.6%
Selected WACC6.8%

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.