ASP.BK WACC - Weighted Average Cost of Capital

The WACC of Asia Plus Group Holdings PCL (ASP.BK) is 6.5%.

The Cost of Equity of Asia Plus Group Holdings PCL (ASP.BK) is 10.90%.

The Cost of Debt of Asia Plus Group Holdings PCL (ASP.BK) is 4.25%.

	Range	Selected
Cost of equity	8.80% - 13.00%	10.90%
Tax rate	20.00% - 20.20%	20.10%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.5% - 7.5%	6.5%

WACC

ASP.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.83	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	13.00%

Tax rate	20.00%	20.20%
Debt/Equity ratio	1.39	1.39
Cost of debt	4.00%	4.50%

After-tax WACC	5.5%	7.5%


Selected WACC	6.5%

ASP.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 ASP.BK:

cost_of_equity (10.90%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.83) + 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.