2S.BK
2S Metal PCL
Price:  
2.36 
THB
Volume:  
15,000
Thailand | Metals & Mining

2S.BK WACC - Weighted Average Cost of Capital

The WACC of 2S Metal PCL (2S.BK) is 5.8%.

The Cost of Equity of 2S Metal PCL (2S.BK) is 5.85%.
The Cost of Debt of 2S Metal PCL (2S.BK) is 4.25%.

RangeSelected
Cost of equity5.0% - 6.7%5.85%
Tax rate3.1% - 7.4%5.25%
Cost of debt4.0% - 4.5%4.25%
WACC5.0% - 6.7%5.8%
WACC

2S.BK WACC calculation

CategoryLowHigh
Long-term bond rate2.6%3.1%
Equity market risk premium7.4%8.4%
Adjusted beta0.320.38
Additional risk adjustments0.0%0.5%
Cost of equity5.0%6.7%
Tax rate3.1%7.4%
Debt/Equity ratio
0.010.01
Cost of debt4.0%4.5%
After-tax WACC5.0%6.7%
Selected WACC5.8%

2S.BK WACC - Detailed calculations of Beta

Debt/EquityUnlevered
PeersCompany NameratioBetabeta
2S.BK2S Metal PCL0.010.150.15
LowHigh
Unlevered beta0.150.15
Relevered beta-0.010.07
Adjusted relevered beta0.320.38

2S.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 2S.BK:

cost_of_equity (5.85%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.32) + 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.