BTNC.BK WACC - Weighted Average Cost of Capital

The WACC of Boutique Newcity PCL (BTNC.BK) is 9.7%.

The Cost of Equity of Boutique Newcity PCL (BTNC.BK) is 10.55%.

The Cost of Debt of Boutique Newcity PCL (BTNC.BK) is 5.50%.

	Range	Selected
Cost of equity	9.10% - 12.00%	10.55%
Tax rate	21.20% - 28.20%	24.70%
Cost of debt	4.00% - 7.00%	5.50%
WACC	8.3% - 11.1%	9.7%

WACC

BTNC.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.88	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	12.00%

Tax rate	21.20%	28.20%
Debt/Equity ratio	0.15	0.15
Cost of debt	4.00%	7.00%

After-tax WACC	8.3%	11.1%


Selected WACC	9.7%

BTNC.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 BTNC.BK:

cost_of_equity (10.55%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.88) + 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.