AAV.BK
Asia Aviation PCL
Price:  
1.37 
THB
Volume:  
32,593,000.00
Thailand | Airlines
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

AAV.BK WACC - Weighted Average Cost of Capital

The WACC of Asia Aviation PCL (AAV.BK) is 7.3%.

The Cost of Equity of Asia Aviation PCL (AAV.BK) is 16.40%.
The Cost of Debt of Asia Aviation PCL (AAV.BK) is 4.25%.

Range Selected
Cost of equity 10.60% - 22.20% 16.40%
Tax rate 12.20% - 14.30% 13.25%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.5% - 9.0% 7.3%
WACC

AAV.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 1.08 2.21
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.60% 22.20%
Tax rate 12.20% 14.30%
Debt/Equity ratio 2.56 2.56
Cost of debt 4.00% 4.50%
After-tax WACC 5.5% 9.0%
Selected WACC 7.3%

AAV.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 AAV.BK:

cost_of_equity (16.40%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.08) + 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.