CSP.BK WACC - Weighted Average Cost of Capital
The WACC of CSP Steel Center PCL (CSP.BK) is 5.8%.
| Range | Selected | |
| Cost of equity | 6.4% - 10.5% | 8.45% |
| Tax rate | 2.9% - 5.2% | 4.05% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.3% - 7.3% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.52 | 0.83 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 10.5% |
| Tax rate | 2.9% | 5.2% |
| Debt/Equity ratio | 5.02 | 5.02 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.3% | 7.3% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CSP.BK | CSP Steel Center PCL | 5.02 | 0.67 | 0.11 |
| AMC.BK | Asia Metal PCL | 1.01 | -0.35 | -0.18 |
| CEN.BK | Capital Engineering Network PCL | 0.15 | 0.33 | 0.29 |
| LHK.BK | Lohakit Metal PCL | 0.04 | 0.33 | 0.32 |
| MILL.BK | Millcon Steel PCL | 13.15 | 0.73 | 0.05 |
| PERM.BK | Permsin Steel Works PCL | 10.73 | -0.68 | -0.06 |
| SAM.BK | Samchai Steel Industries PCL | 8.19 | -0.75 | -0.08 |
| SSSC.BK | Siam Steel Service Center PCL | 0.09 | 0.58 | 0.53 |
| TGPRO.BK | Thai-German Products PCL | 1.81 | 0.4 | 0.15 |
| TYCN.BK | Tycoons Worldwide Group Thailand PCL | 1.22 | 0.09 | 0.04 |
| Low | High | |
| Unlevered beta | 0.05 | 0.13 |
| Relevered beta | 0.28 | 0.75 |
| Adjusted relevered beta | 0.52 | 0.83 |
CSP.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 CSP.BK:
cost_of_equity (8.45%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.52) + 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.