AFC.BK WACC - Weighted Average Cost of Capital

The WACC of Asia Fiber PCL (AFC.BK) is 8.0%.

The Cost of Equity of Asia Fiber PCL (AFC.BK) is 8.30%.

The Cost of Debt of Asia Fiber PCL (AFC.BK) is 7.55%.

	Range	Selected
Cost of equity	7.00% - 9.60%	8.30%
Tax rate	2.20% - 3.60%	2.90%
Cost of debt	4.00% - 11.10%	7.55%
WACC	6.1% - 9.9%	8.0%

WACC

AFC.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.6	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.00%	9.60%

Tax rate	2.20%	3.60%
Debt/Equity ratio	0.39	0.39
Cost of debt	4.00%	11.10%

After-tax WACC	6.1%	9.9%


Selected WACC	8.0%

AFC.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 AFC.BK:

cost_of_equity (8.30%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.6) + 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.