BTNC.BK WACC - Weighted Average Cost of Capital

The WACC of Boutique Newcity PCL (BTNC.BK) is 10.2%.

The Cost of Equity of Boutique Newcity PCL (BTNC.BK) is 11.20%.

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

	Range	Selected
Cost of equity	9.60% - 12.80%	11.20%
Tax rate	21.20% - 28.20%	24.70%
Cost of debt	4.00% - 7.00%	5.50%
WACC	8.7% - 11.7%	10.2%

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	0.95	1.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	12.80%

Tax rate	21.20%	28.20%
Debt/Equity ratio	0.16	0.16
Cost of debt	4.00%	7.00%

After-tax WACC	8.7%	11.7%


Selected WACC	10.2%

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 (11.20%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.95) + 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.