AMC.BK WACC - Weighted Average Cost of Capital

The WACC of Asia Metal PCL (AMC.BK) is 5.1%.

The Cost of Equity of Asia Metal PCL (AMC.BK) is 6.60%.

The Cost of Debt of Asia Metal PCL (AMC.BK) is 4.55%.

	Range	Selected
Cost of equity	5.40% - 7.80%	6.60%
Tax rate	18.50% - 20.10%	19.30%
Cost of debt	4.30% - 4.80%	4.55%
WACC	4.4% - 5.8%	5.1%

WACC

AMC.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.38	0.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.40%	7.80%

Tax rate	18.50%	20.10%
Debt/Equity ratio	1.01	1.01
Cost of debt	4.30%	4.80%

After-tax WACC	4.4%	5.8%


Selected WACC	5.1%

AMC.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 AMC.BK:

cost_of_equity (6.60%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.38) + 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.