ICN.BK
Information and Communication Networks PCL
Price:  
1.83 
THB
Volume:  
666,800
Thailand | IT Services

ICN.BK WACC - Weighted Average Cost of Capital

The WACC of Information and Communication Networks PCL (ICN.BK) is 7.2%.

The Cost of Equity of Information and Communication Networks PCL (ICN.BK) is 7.4%.
The Cost of Debt of Information and Communication Networks PCL (ICN.BK) is 4.25%.

RangeSelected
Cost of equity6.5% - 8.3%7.4%
Tax rate20.3% - 20.4%20.35%
Cost of debt4.0% - 4.5%4.25%
WACC6.3% - 8.1%7.2%
WACC

ICN.BK WACC calculation

CategoryLowHigh
Long-term bond rate2.6%3.1%
Equity market risk premium7.4%8.4%
Adjusted beta0.530.56
Additional risk adjustments0.0%0.5%
Cost of equity6.5%8.3%
Tax rate20.3%20.4%
Debt/Equity ratio
0.050.05
Cost of debt4.0%4.5%
After-tax WACC6.3%8.1%
Selected WACC7.2%

ICN.BK WACC - Detailed calculations of Beta

Debt/EquityUnlevered
PeersCompany NameratioBetabeta
ICN.BKInformation and Communication Networks PCL0.051.151.1
LowHigh
Unlevered beta1.11.1
Relevered beta0.30.34
Adjusted relevered beta0.530.56

ICN.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 ICN.BK:

cost_of_equity (7.40%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.53) + 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.