IFS.BK WACC - Weighted Average Cost of Capital

The WACC of IFS Capital Thailand PCL (IFS.BK) is 6.0%.

The Cost of Equity of IFS Capital Thailand PCL (IFS.BK) is 10.95%.

The Cost of Debt of IFS Capital Thailand PCL (IFS.BK) is 5.10%.

	Range	Selected
Cost of equity	8.00% - 13.90%	10.95%
Tax rate	20.30% - 20.50%	20.40%
Cost of debt	4.00% - 6.20%	5.10%
WACC	4.6% - 7.5%	6.0%

WACC

IFS.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.73	1.23

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	13.90%

Tax rate	20.30%	20.50%
Debt/Equity ratio	2.49	2.49
Cost of debt	4.00%	6.20%

After-tax WACC	4.6%	7.5%


Selected WACC	6.0%

IFS.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 IFS.BK:

cost_of_equity (10.95%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.73) + 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.