BEAUTY.BK WACC - Weighted Average Cost of Capital
The WACC of Beauty Community PCL (BEAUTY.BK) is 7.4%.
| Range | Selected | |
| Cost of equity | 6.0% - 9.2% | 7.6% |
| Tax rate | 20.0% - 22.0% | 21% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.9% - 8.9% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.46 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 9.2% |
| Tax rate | 20.0% | 22.0% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.9% | 8.9% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BEAUTY.BK | Beauty Community PCL | 0.08 | 1.95 | 1.83 |
| 104.HK | Asia Commercial Holdings Ltd | 1.1 | 0.21 | 0.11 |
| 1942.HK | MOG Holdings Ltd | 0.13 | 1.39 | 1.26 |
| 543.SI | Noel Gifts International Ltd | 0.06 | -0.2 | -0.19 |
| 8473.HK | MI Ming Mart Holdings Ltd | 0.05 | 0.21 | 0.2 |
| 9904.T | Verite Co Ltd | 0.15 | 0.15 | 0.14 |
| INNATURE.KL | Innature Bhd | 0.2 | 0.86 | 0.74 |
| JUBILE.BK | Jubilee Enterprise PCL | 0.19 | 1.16 | 1.01 |
| KHJB.KL | Kim Hin Joo (Malaysia) Bhd | 0.16 | 0.32 | 0.29 |
| SE-ED.BK | SE-Education PCL | 0.87 | -0.1 | -0.06 |
| Low | High | |
| Unlevered beta | 0.18 | 0.47 |
| Relevered beta | 0.19 | 0.49 |
| Adjusted relevered beta | 0.46 | 0.66 |
BEAUTY.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 BEAUTY.BK:
cost_of_equity (7.60%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.46) + 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.