INET.BK WACC - Weighted Average Cost of Capital
The WACC of Internet Thailand PCL (INET.BK) is 11.7%.
| Range | Selected | |
| Cost of equity | 9.0% - 14.8% | 11.9% |
| Tax rate | 22.6% - 28.2% | 25.4% |
| Cost of debt | 14.3% - 15.4% | 14.85% |
| WACC | 9.7% - 13.6% | 11.7% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.87 | 1.33 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.0% | 14.8% |
| Tax rate | 22.6% | 28.2% |
| Debt/Equity ratio | 0.47 | 0.47 |
| Cost of debt | 14.3% | 15.4% |
| After-tax WACC | 9.7% | 13.6% |
| Selected WACC | 11.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| INET.BK | Internet Thailand PCL | 0.47 | 0.9 | 0.67 |
| 072130.KS | UAngel Corp | 0.06 | 0.48 | 0.46 |
| 2351.T | ASJ Inc | 0.29 | 0.6 | 0.5 |
| 300051.SZ | Xiamen 35.com Technology Co Ltd | 0.5 | 1.52 | 1.1 |
| 300895.SZ | Beijing Topnew Info & Tech Co Ltd | 0 | 1.82 | 1.82 |
| 3915.T | TerraSky Co Ltd | 0.01 | 1.33 | 1.32 |
| 688258.SS | Jiangsu Eazytec Co Ltd | 0.09 | 1.98 | 1.85 |
| 7093.T | Adish Co Ltd | 0.45 | -0.3 | -0.22 |
| ICN.BK | Information and Communication Networks PCL | 0.05 | 1.15 | 1.11 |
| TPS.BK | Practical Solution PCL | 0.01 | 0.29 | 0.28 |
| Low | High | |
| Unlevered beta | 0.6 | 1.1 |
| Relevered beta | 0.81 | 1.49 |
| Adjusted relevered beta | 0.87 | 1.33 |
INET.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 INET.BK:
cost_of_equity (11.90%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.87) + 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.