HANA.BK WACC - Weighted Average Cost of Capital

The WACC of Hana Microelectronics PCL (HANA.BK) is 12.2%.

The Cost of Equity of Hana Microelectronics PCL (HANA.BK) is 12.50%.

The Cost of Debt of Hana Microelectronics PCL (HANA.BK) is 6.15%.

	Range	Selected
Cost of equity	11.10% - 13.90%	12.50%
Tax rate	4.10% - 4.70%	4.40%
Cost of debt	4.00% - 8.30%	6.15%
WACC	10.7% - 13.6%	12.2%

WACC

HANA.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	1.14	1.23

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	13.90%

Tax rate	4.10%	4.70%
Debt/Equity ratio	0.05	0.05
Cost of debt	4.00%	8.30%

After-tax WACC	10.7%	13.6%


Selected WACC	12.2%

HANA.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 HANA.BK:

cost_of_equity (12.50%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.14) + 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.