XO.BK
Exotic Food PCL
Price:  
16 
THB
Volume:  
440,700
Thailand | Food Products

XO.BK WACC - Weighted Average Cost of Capital

The WACC of Exotic Food PCL (XO.BK) is 9.4%.

The Cost of Equity of Exotic Food PCL (XO.BK) is 9.4%.
The Cost of Debt of Exotic Food PCL (XO.BK) is 4.25%.

RangeSelected
Cost of equity7.5% - 11.3%9.4%
Tax rate3.8% - 3.9%3.85%
Cost of debt4.0% - 4.5%4.25%
WACC7.5% - 11.2%9.4%
WACC

XO.BK WACC calculation

CategoryLowHigh
Long-term bond rate2.6%3.1%
Equity market risk premium7.4%8.4%
Adjusted beta0.670.92
Additional risk adjustments0.0%0.5%
Cost of equity7.5%11.3%
Tax rate3.8%3.9%
Debt/Equity ratio
0.010.01
Cost of debt4.0%4.5%
After-tax WACC7.5%11.2%
Selected WACC9.4%

XO.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 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.