BA.BK
Bangkok Airways PCL
Price:  
15 
THB
Volume:  
19,487,800
Thailand | Airlines

BA.BK WACC - Weighted Average Cost of Capital

The WACC of Bangkok Airways PCL (BA.BK) is 8.3%.

The Cost of Equity of Bangkok Airways PCL (BA.BK) is 9%.
The Cost of Debt of Bangkok Airways PCL (BA.BK) is 7.55%.

RangeSelected
Cost of equity7.3% - 10.7%9%
Tax rate4.2% - 9.8%7%
Cost of debt6.2% - 8.9%7.55%
WACC6.8% - 9.7%8.3%
WACC

BA.BK WACC calculation

CategoryLowHigh
Long-term bond rate2.6%3.1%
Equity market risk premium7.4%8.4%
Adjusted beta0.640.85
Additional risk adjustments0.0%0.5%
Cost of equity7.3%10.7%
Tax rate4.2%9.8%
Debt/Equity ratio
0.540.54
Cost of debt6.2%8.9%
After-tax WACC6.8%9.7%
Selected WACC8.3%

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 (9.00%) = 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.