ASK.BK WACC - Weighted Average Cost of Capital

The WACC of Asia Sermkij Leasing PCL (ASK.BK) is 8.0%.

The Cost of Equity of Asia Sermkij Leasing PCL (ASK.BK) is 20.05%.

The Cost of Debt of Asia Sermkij Leasing PCL (ASK.BK) is 9.15%.

	Range	Selected
Cost of equity	16.40% - 23.70%	20.05%
Tax rate	20.30% - 20.50%	20.40%
Cost of debt	4.00% - 14.30%	9.15%
WACC	3.9% - 12.1%	8.0%

WACC

ASK.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	1.85	2.39

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.40%	23.70%

Tax rate	20.30%	20.50%
Debt/Equity ratio	16.31	16.31
Cost of debt	4.00%	14.30%

After-tax WACC	3.9%	12.1%


Selected WACC	8.0%

ASK.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 ASK.BK:

cost_of_equity (20.05%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.85) + 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.