BA.BK WACC - Weighted Average Cost of Capital

The WACC of Bangkok Airways PCL (BA.BK) is 9.1%.

The Cost of Equity of Bangkok Airways PCL (BA.BK) is 9.70%.

The Cost of Debt of Bangkok Airways PCL (BA.BK) is 8.80%.

	Range	Selected
Cost of equity	7.30% - 12.10%	9.70%
Tax rate	11.80% - 16.60%	14.20%
Cost of debt	6.20% - 11.40%	8.80%
WACC	6.8% - 11.3%	9.1%

WACC

BA.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.64	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.30%	12.10%

Tax rate	11.80%	16.60%
Debt/Equity ratio	0.39	0.39
Cost of debt	6.20%	11.40%

After-tax WACC	6.8%	11.3%


Selected WACC	9.1%

BA.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 BA.BK:

cost_of_equity (9.70%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.64) + 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.