The WACC of Exotic Food PCL (XO.BK) is 9.4%.
Range | Selected | |
Cost of equity | 7.5% - 11.3% | 9.4% |
Tax rate | 3.8% - 3.9% | 3.85% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 7.5% - 11.2% | 9.4% |
Category | Low | High |
Long-term bond rate | 2.6% | 3.1% |
Equity market risk premium | 7.4% | 8.4% |
Adjusted beta | 0.67 | 0.92 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.5% | 11.3% |
Tax rate | 3.8% | 3.9% |
Debt/Equity ratio | 0.01 | 0.01 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 7.5% | 11.2% |
Selected WACC | 9.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
XO.BK | Exotic Food PCL | 0.01 | 1 | 0.99 |
CHOTI.BK | Kiang Huat Sea Gull Trading Frozen Food PCL | 2.69 | 0.7 | 0.19 |
ICHI.BK | Ichitan Group PCL | 0 | 0.79 | 0.79 |
KASET.BK | Thai Ha PCL | 1.78 | 1.64 | 0.6 |
MALEE.BK | Malee Group PCL | 0.36 | 1.65 | 1.23 |
RBF.BK | R&B Food Supply PCL | 0.02 | 1.18 | 1.15 |
SORKON.BK | S Khonkaen Foods PCL | 0.88 | 0.06 | 0.03 |
TKN.BK | Taokaenoi Food & Marketing PCL | 0.02 | 1.2 | 1.18 |
TMILL.BK | T S Flour Mill PCL | 0.53 | 0.43 | 0.28 |
UPOIC.BK | United Palm Oil Industry PCL | 0.02 | 0.35 | 0.34 |
Low | High | |
Unlevered beta | 0.5 | 0.87 |
Relevered beta | 0.51 | 0.88 |
Adjusted relevered beta | 0.67 | 0.92 |
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 XO.BK:
cost_of_equity (9.40%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.67) + 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.