ASIA.BK WACC - Weighted Average Cost of Capital

The WACC of Asia Hotel PCL (ASIA.BK) is 8.3%.

The Cost of Equity of Asia Hotel PCL (ASIA.BK) is 7.50%.

The Cost of Debt of Asia Hotel PCL (ASIA.BK) is 9.75%.

	Range	Selected
Cost of equity	6.30% - 8.70%	7.50%
Tax rate	2.70% - 10.90%	6.80%
Cost of debt	5.20% - 14.30%	9.75%
WACC	5.6% - 11.1%	8.3%

WACC

ASIA.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.51	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	8.70%

Tax rate	2.70%	10.90%
Debt/Equity ratio	1.44	1.44
Cost of debt	5.20%	14.30%

After-tax WACC	5.6%	11.1%


Selected WACC	8.3%

ASIA.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 ASIA.BK:

cost_of_equity (7.50%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.51) + 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.