BFIT.BK WACC - Weighted Average Cost of Capital
The WACC of Srisawad Finance PCL (BFIT.BK) is 7.9%.
| Range | Selected | |
| Cost of equity | 6.5% - 9.4% | 7.95% |
| Tax rate | 8.1% - 10.1% | 9.1% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.4% - 9.3% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.48 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 9.4% |
| Tax rate | 8.1% | 10.1% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.4% | 9.3% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BFIT.BK | Srisawad Finance PCL | 0.03 | 0.91 | 0.89 |
| 1543.HK | Guangdong Join-Share Financing Guarantee Investment Co Ltd | 2.25 | 0.43 | 0.14 |
| AMANAH.BK | Amanah Leasing PCL | 2.36 | 2.16 | 0.68 |
| ECL.BK | Eastern Commercial Leasing PCL | 2.15 | 1.67 | 0.56 |
| MIDA.BK | Mida Assets PCL | 8.81 | 1.1 | 0.12 |
| PL.BK | Phatra Leasing PCL | 12.29 | 1.16 | 0.09 |
| S11.BK | S 11 Group PCL | 1.37 | 1.83 | 0.81 |
| SAK.BK | Saksiam Leasing PCL | 1.03 | 1.27 | 0.65 |
| SFIN.ME | Safmar Finansovye Investitsii PAO | 1.32 | 0.09 | 0.04 |
| THANI.BK | Ratchthani Leasing PCL | 3.64 | 0.73 | 0.17 |
| Low | High | |
| Unlevered beta | 0.16 | 0.6 |
| Relevered beta | 0.22 | 0.48 |
| Adjusted relevered beta | 0.48 | 0.65 |
BFIT.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 BFIT.BK:
cost_of_equity (7.95%) = risk_free_rate (2.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.48) + 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.