ANAN.BK WACC - Weighted Average Cost of Capital

The WACC of Ananda Development PCL (ANAN.BK) is 9.4%.

The Cost of Equity of Ananda Development PCL (ANAN.BK) is 12.60%.

The Cost of Debt of Ananda Development PCL (ANAN.BK) is 13.15%.

	Range	Selected
Cost of equity	8.80% - 16.40%	12.60%
Tax rate	22.30% - 33.80%	28.05%
Cost of debt	6.70% - 19.60%	13.15%
WACC	5.6% - 13.3%	9.4%

WACC

ANAN.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.84	1.52

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	16.40%

Tax rate	22.30%	33.80%
Debt/Equity ratio	8.86	8.86
Cost of debt	6.70%	19.60%

After-tax WACC	5.6%	13.3%


Selected WACC	9.4%

ANAN.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 ANAN.BK:

cost_of_equity (12.60%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.84) + 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.