A.BK WACC - Weighted Average Cost of Capital

The WACC of Areeya Property PCL (A.BK) is 6.4%.

The Cost of Equity of Areeya Property PCL (A.BK) is 6.30%.

The Cost of Debt of Areeya Property PCL (A.BK) is 7.15%.

	Range	Selected
Cost of equity	5.50% - 7.10%	6.30%
Tax rate	7.40% - 10.80%	9.10%
Cost of debt	7.00% - 7.30%	7.15%
WACC	6.1% - 6.7%	6.4%

WACC

A.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.39	0.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.50%	7.10%

Tax rate	7.40%	10.80%
Debt/Equity ratio	1.92	1.92
Cost of debt	7.00%	7.30%

After-tax WACC	6.1%	6.7%


Selected WACC	6.4%

A.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 A.BK:

cost_of_equity (6.30%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.39) + 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.