UPF.BK
Union Pioneer PCL
Price:  
26.50 
THB
Volume:  
1,300.00
Thailand | Textiles, Apparel & Luxury Goods
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UPF.BK WACC - Weighted Average Cost of Capital

The WACC of Union Pioneer PCL (UPF.BK) is 6.5%.

The Cost of Equity of Union Pioneer PCL (UPF.BK) is 6.85%.
The Cost of Debt of Union Pioneer PCL (UPF.BK) is 4.75%.

Range Selected
Cost of equity 6.00% - 7.70% 6.85%
Tax rate 15.50% - 17.50% 16.50%
Cost of debt 4.00% - 5.50% 4.75%
WACC 5.7% - 7.3% 6.5%
WACC

UPF.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.46 0.49
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.00% 7.70%
Tax rate 15.50% 17.50%
Debt/Equity ratio 0.12 0.12
Cost of debt 4.00% 5.50%
After-tax WACC 5.7% 7.3%
Selected WACC 6.5%

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 (6.85%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.46) + 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.