AMC.BK WACC - Weighted Average Cost of Capital

The WACC of Asia Metal PCL (AMC.BK) is 5.6%.

The Cost of Equity of Asia Metal PCL (AMC.BK) is 6.90%.

The Cost of Debt of Asia Metal PCL (AMC.BK) is 5.50%.

	Range	Selected
Cost of equity	5.50% - 8.30%	6.90%
Tax rate	20.30% - 22.40%	21.35%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.3% - 6.9%	5.6%

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	0.39	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.50%	8.30%

Tax rate	20.30%	22.40%
Debt/Equity ratio	1.03	1.03
Cost of debt	4.00%	7.00%

After-tax WACC	4.3%	6.9%


Selected WACC	5.6%

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 (6.90%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.39) + 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.