INET.BK WACC - Weighted Average Cost of Capital

The WACC of Internet Thailand PCL (INET.BK) is 11.7%.

The Cost of Equity of Internet Thailand PCL (INET.BK) is 11.90%.

The Cost of Debt of Internet Thailand PCL (INET.BK) is 14.85%.

	Range	Selected
Cost of equity	9.40% - 14.40%	11.90%
Tax rate	22.60% - 28.20%	25.40%
Cost of debt	14.30% - 15.40%	14.85%
WACC	9.9% - 13.4%	11.7%

WACC

INET.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.91	1.29

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.40%	14.40%

Tax rate	22.60%	28.20%
Debt/Equity ratio	0.42	0.42
Cost of debt	14.30%	15.40%

After-tax WACC	9.9%	13.4%


Selected WACC	11.7%

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 (0.91) + 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.