ASIA.BK WACC - Weighted Average Cost of Capital

The WACC of Asia Hotel PCL (ASIA.BK) is 9.0%.

The Cost of Equity of Asia Hotel PCL (ASIA.BK) is 9.25%.

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

	Range	Selected
Cost of equity	7.60% - 10.90%	9.25%
Tax rate	2.70% - 10.90%	6.80%
Cost of debt	5.20% - 14.30%	9.75%
WACC	6.0% - 12.0%	9.0%

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	0.67	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	10.90%

Tax rate	2.70%	10.90%
Debt/Equity ratio	1.49	1.49
Cost of debt	5.20%	14.30%

After-tax WACC	6.0%	12.0%


Selected WACC	9.0%

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 (9.25%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.67) + 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.