AMANAH.BK WACC - Weighted Average Cost of Capital

The WACC of Amanah Leasing PCL (AMANAH.BK) is 11.2%.

The Cost of Equity of Amanah Leasing PCL (AMANAH.BK) is 10.40%.

The Cost of Debt of Amanah Leasing PCL (AMANAH.BK) is 13.90%.

	Range	Selected
Cost of equity	6.20% - 14.60%	10.40%
Tax rate	14.80% - 16.10%	15.45%
Cost of debt	5.20% - 22.60%	13.90%
WACC	5.1% - 17.4%	11.2%

WACC

AMANAH.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.49	1.31

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	14.60%

Tax rate	14.80%	16.10%
Debt/Equity ratio	1.8	1.8
Cost of debt	5.20%	22.60%

After-tax WACC	5.1%	17.4%


Selected WACC	11.2%

AMANAH.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 AMANAH.BK:

cost_of_equity (10.40%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.49) + 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.