AMA.BK WACC - Weighted Average Cost of Capital
The WACC of AMA Marine PCL (AMA.BK) is 8.8%.
| Range | Selected | |
| Cost of equity | 9.1% - 13.8% | 11.45% |
| Tax rate | 8.5% - 9.9% | 9.2% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.1% - 10.4% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.87 | 1.22 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.1% | 13.8% |
| Tax rate | 8.5% | 9.9% |
| Debt/Equity ratio | 0.55 | 0.55 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.1% | 10.4% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AMA.BK | AMA Marine PCL | 0.55 | 0.37 | 0.25 |
| 539841.BO | Lancer Container Lines Ltd | 0.18 | 1.12 | 0.96 |
| HUBLINE.KL | Hubline Bhd | 0.52 | 1.34 | 0.91 |
| JUTHA.BK | Jutha Maritime PCL | 0.28 | 1.19 | 0.95 |
| PSL.BK | Precious Shipping PCL | 0.84 | 0.75 | 0.43 |
| RCL.BK | Regional Container Lines PCL | 0.5 | 0.9 | 0.62 |
| RP.BK | Raja Ferry Port PCL | 3.56 | 0.61 | 0.14 |
| S19.SI | Singapore Shipping Corporation Ltd | 0.32 | 0.54 | 0.42 |
| VNA.VN | Vinaship JSC | 0.22 | 1.48 | 1.23 |
| VTO.VN | Vietnam Tanker JSC | 0.2 | 1.02 | 0.87 |
| Low | High | |
| Unlevered beta | 0.54 | 0.88 |
| Relevered beta | 0.81 | 1.33 |
| Adjusted relevered beta | 0.87 | 1.22 |
AMA.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 AMA.BK:
cost_of_equity (11.45%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.87) + 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.