AUCT.BK WACC - Weighted Average Cost of Capital
The WACC of Union Auction PCL (AUCT.BK) is 7.8%.
| Range | Selected | |
| Cost of equity | 7.8% - 10.4% | 9.1% |
| Tax rate | 20.4% - 20.6% | 20.5% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.7% - 8.9% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.7 | 0.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 10.4% |
| Tax rate | 20.4% | 20.6% |
| Debt/Equity ratio | 0.29 | 0.29 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.7% | 8.9% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AUCT.BK | Union Auction PCL | 0.29 | 0.57 | 0.47 |
| 063170.KQ | Seoul Auction Co Ltd | 0.61 | 0.54 | 0.36 |
| 300668.SZ | Shenzhen Jiang & Associates Creative Design Co Ltd | 0.03 | 0.68 | 0.67 |
| 3180.T | Beauty Garage Inc | 0.1 | 0.79 | 0.73 |
| 6966.HK | China Wan Tong Yuan (Holdings) Ltd | 0 | -0.16 | -0.16 |
| 7320.T | Japan Living Warranty Inc | 0.26 | 0.65 | 0.54 |
| 8029.HK | Sun International Group Ltd | 0.66 | 0.65 | 0.43 |
| SISB.BK | SISB PCL | 0.04 | 0.7 | 0.68 |
| SPA.BK | Siam Wellness Group PCL | 0.15 | 0.77 | 0.69 |
| UAC.BK | UAC Global PCL | 0.53 | 0.46 | 0.33 |
| Low | High | |
| Unlevered beta | 0.45 | 0.59 |
| Relevered beta | 0.55 | 0.72 |
| Adjusted relevered beta | 0.7 | 0.81 |
AUCT.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 AUCT.BK:
cost_of_equity (9.10%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.7) + 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.