INET.BK WACC - Weighted Average Cost of Capital

The WACC of Internet Thailand PCL (INET.BK) is 12.7%.

The Cost of Equity of Internet Thailand PCL (INET.BK) is 18.10%.

The Cost of Debt of Internet Thailand PCL (INET.BK) is 16.20%.

	Range	Selected
Cost of equity	14.10% - 22.10%	18.10%
Tax rate	27.20% - 35.20%	31.20%
Cost of debt	14.30% - 18.10%	16.20%
WACC	11.3% - 14.1%	12.7%

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	1.56	2.2

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.10%	22.10%

Tax rate	27.20%	35.20%
Debt/Equity ratio	3.4	3.4
Cost of debt	14.30%	18.10%

After-tax WACC	11.3%	14.1%


Selected WACC	12.7%

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 (18.10%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.56) + 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.