AWC.BK WACC - Weighted Average Cost of Capital

The WACC of Asset World Corp PCL (AWC.BK) is 6.8%.

The Cost of Equity of Asset World Corp PCL (AWC.BK) is 9.10%.

The Cost of Debt of Asset World Corp PCL (AWC.BK) is 5.90%.

	Range	Selected
Cost of equity	7.10% - 11.10%	9.10%
Tax rate	17.90% - 18.70%	18.30%
Cost of debt	4.00% - 7.80%	5.90%
WACC	5.0% - 8.5%	6.8%

WACC

AWC.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.61	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.10%	11.10%

Tax rate	17.90%	18.70%
Debt/Equity ratio	1.21	1.21
Cost of debt	4.00%	7.80%

After-tax WACC	5.0%	8.5%


Selected WACC	6.8%

AWC.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 AWC.BK:

cost_of_equity (9.10%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.61) + 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.