BSM.BK WACC - Weighted Average Cost of Capital
The WACC of BuilderSmart PCL (BSM.BK) is 6.7%.
| Range | Selected | |
| Cost of equity | 9.7% - 14.6% | 12.15% |
| Tax rate | 12.6% - 17.5% | 15.05% |
| Cost of debt | 4.2% - 7.0% | 5.6% |
| WACC | 5.3% - 8.2% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.97 | 1.31 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.7% | 14.6% |
| Tax rate | 12.6% | 17.5% |
| Debt/Equity ratio | 2.69 | 2.69 |
| Cost of debt | 4.2% | 7.0% |
| After-tax WACC | 5.3% | 8.2% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BSM.BK | BuilderSmart PCL | 2.69 | 0.61 | 0.19 |
| 540401.BO | Maximus International Ltd | 0.14 | 0.33 | 0.3 |
| CRANE.BK | Chu Kai PCL | 2.57 | 1.78 | 0.57 |
| HARN.BK | Harn Engineering Solutions PCL | 0.09 | 0.05 | 0.04 |
| IPMUDA.KL | Ipmuda Bhd | 0.25 | 1.28 | 1.06 |
| MGT.BK | Megachem Thailand PCL | 0.24 | 0.52 | 0.44 |
| SE.BK | SiamEast Solutions PCL | 0.03 | 0.99 | 0.96 |
| TCC.BK | Thai Capital Corporation PCL | 0.75 | 0.78 | 0.48 |
| TCJ.BK | TCJ Asia PCL | 1.71 | 0.13 | 0.05 |
| THMUI.BK | Thai Mui Corporation PCL | 1.82 | 0.72 | 0.29 |
| Low | High | |
| Unlevered beta | 0.29 | 0.45 |
| Relevered beta | 0.96 | 1.46 |
| Adjusted relevered beta | 0.97 | 1.31 |
BSM.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 BSM.BK:
cost_of_equity (12.15%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.97) + 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.