VNT.BK
Vinythai PCL
Price:  
34.25 
THB
Volume:  
394,600
Thailand | Chemicals

VNT.BK WACC - Weighted Average Cost of Capital

The WACC of Vinythai PCL (VNT.BK) is 8.3%.

The Cost of Equity of Vinythai PCL (VNT.BK) is 8.45%.
The Cost of Debt of Vinythai PCL (VNT.BK) is 4.25%.

RangeSelected
Cost of equity7.0% - 9.9%8.45%
Tax rate5.4% - 7.9%6.65%
Cost of debt4.0% - 4.5%4.25%
WACC6.9% - 9.7%8.3%
WACC

VNT.BK WACC calculation

CategoryLowHigh
Long-term bond rate2.9%3.4%
Equity market risk premium6.3%7.3%
Adjusted beta0.660.83
Additional risk adjustments0.0%0.5%
Cost of equity7.0%9.9%
Tax rate5.4%7.9%
Debt/Equity ratio
0.050.05
Cost of debt4.0%4.5%
After-tax WACC6.9%9.7%
Selected WACC8.3%

VNT.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 VNT.BK:

cost_of_equity (8.45%) = risk_free_rate (3.15%) + equity_risk_premium (6.80%) * adjusted_beta (0.66) + 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.