BRRGIF.BK WACC - Weighted Average Cost of Capital
The WACC of Buriram Sugar Group Power Plant Infrastructure Fund (BRRGIF.BK) is 7.4%.
| Range | Selected | |
| Cost of equity | 9.3% - 12.3% | 10.8% |
| Tax rate | 20.0% - 20.0% | 20% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.7% - 8.2% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.91 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.3% | 12.3% |
| Tax rate | 20.0% | 20.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.7% | 8.2% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BRRGIF.BK | Buriram Sugar Group Power Plant Infrastructure Fund | 0.89 | 0.21 | 0.12 |
| 319400.KQ | Huyndai Movex Co Ltd | 0.02 | 0.98 | 0.96 |
| DIF.BK | Digital Telecommunications Infrastructure Fund | 0.4 | 0.58 | 0.44 |
| FPC.AX | Fat Prophets Global Contrarian Fund Ltd | 0.82 | 0.25 | 0.15 |
| FSI.AX | Flagship Investments Ltd | 0.36 | 0.87 | 0.68 |
| JASIF.BK | Jasmine Broadband Internet Infrastructure Fund | 0.25 | 0.7 | 0.58 |
| NAC.AX | NAOS Ex-50 Opportunities Company Ltd | 0.72 | 0.8 | 0.51 |
| NCC.AX | NAOS Emerging Opportunities Company Ltd | 1.06 | 0.64 | 0.35 |
| NSC.AX | NAOS Small Cap Opportunities Company Ltd | 0.8 | 0.98 | 0.6 |
| PHS.VN | Phu Hung Securities Corp | 0.72 | 1.67 | 1.06 |
| SUPEREIF.BK | Super Energy Power Plant Infrastructure Fund | 0.7 | 0.24 | 0.16 |
| Low | High | |
| Unlevered beta | 0.44 | 0.58 |
| Relevered beta | 0.87 | 1.06 |
| Adjusted relevered beta | 0.91 | 1.04 |
BRRGIF.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 BRRGIF.BK:
cost_of_equity (10.80%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.91) + 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.