BKKCP.BK WACC - Weighted Average Cost of Capital
The WACC of Bangkok Commercial Property Fund (BKKCP.BK) is 6.0%.
| Range | Selected | |
| Cost of equity | 6.7% - 9.4% | 8.05% |
| Tax rate | 20.0% - 20.0% | 20% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.4% - 6.7% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.56 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 9.4% |
| Tax rate | 20.0% | 20.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.4% | 6.7% |
| Selected WACC | 6.0% | |
| Low | High | |
| Unlevered beta | 0.13 | 0.26 |
| Relevered beta | 0.34 | 0.55 |
| Adjusted relevered beta | 0.56 | 0.7 |
BKKCP.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 BKKCP.BK:
cost_of_equity (8.05%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.56) + 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.