WHAUP.BK
Wha Utilities and Power PCL
Price:  
3.24 
THB
Volume:  
1,773,600.00
Thailand | Water Utilities
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WHAUP.BK WACC - Weighted Average Cost of Capital

The WACC of Wha Utilities and Power PCL (WHAUP.BK) is 6.5%.

The Cost of Equity of Wha Utilities and Power PCL (WHAUP.BK) is 7.40%.
The Cost of Debt of Wha Utilities and Power PCL (WHAUP.BK) is 5.90%.

Range Selected
Cost of equity 5.60% - 9.20% 7.40%
Tax rate 1.70% - 1.90% 1.80%
Cost of debt 4.00% - 7.80% 5.90%
WACC 4.7% - 8.3% 6.5%
WACC

WHAUP.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.41 0.66
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.60% 9.20%
Tax rate 1.70% 1.90%
Debt/Equity ratio 1.29 1.29
Cost of debt 4.00% 7.80%
After-tax WACC 4.7% 8.3%
Selected WACC 6.5%

WHAUP.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 WHAUP.BK:

cost_of_equity (7.40%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.41) + 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.