CRC.BK WACC - Weighted Average Cost of Capital

The WACC of Central Retail Corporation PCL (CRC.BK) is 7.1%.

The Cost of Equity of Central Retail Corporation PCL (CRC.BK) is 10.70%.

The Cost of Debt of Central Retail Corporation PCL (CRC.BK) is 4.25%.

	Range	Selected
Cost of equity	9.30% - 12.10%	10.70%
Tax rate	21.50% - 27.00%	24.25%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.4% - 7.9%	7.1%

WACC

CRC.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.91	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	12.10%

Tax rate	21.50%	27.00%
Debt/Equity ratio	0.91	0.91
Cost of debt	4.00%	4.50%

After-tax WACC	6.4%	7.9%


Selected WACC	7.1%

CRC.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 CRC.BK:

cost_of_equity (10.70%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.91) + 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.