The WACC of Khonburi Sugar Power Plant Infrastructure Fund (KBSPIF.BK) is 6.0%.
Range | Selected | |
Cost of equity | 6.5% - 9.5% | 8% |
Tax rate | 20.0% - 20.0% | 20% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 5.3% - 6.7% | 6.0% |
Category | Low | High |
Long-term bond rate | 2.6% | 3.1% |
Equity market risk premium | 7.4% | 8.4% |
Adjusted beta | 0.53 | 0.7 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.5% | 9.5% |
Tax rate | 20.0% | 20.0% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 5.3% | 6.7% |
Selected WACC | 6.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
KBSPIF.BK | Khonburi Sugar Power Plant Infrastructure Fund | 1.07 | 0.06 | 0.03 |
BOT.VN | Thai Ha Bridge Bot JSC | 4.74 | 1.31 | 0.27 |
KBAG.JK | Karya Bersama Anugerah PT | 0.07 | 0.17 | 0.17 |
KUN.BK | Villa Kunalai PCL | 2.34 | 0.49 | 0.17 |
RCC.VN | Railway Construction Corporation JSC | 0.52 | 0.1 | 0.07 |
RT.BK | Right Tunnelling PCL | 8.05 | 1.2 | 0.16 |
SA.BK | Siamese Asset PCL | 1.51 | 0.02 | 0.01 |
SZB.VN | Sonadezi Long Binh Share Holding Co | 0.04 | 0.58 | 0.56 |
TRIN.JK | Perintis Triniti Properti PT | 1.6 | 0.82 | 0.36 |
Low | High | |
Unlevered beta | 0.16 | 0.17 |
Relevered beta | 0.3 | 0.55 |
Adjusted relevered beta | 0.53 | 0.7 |
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 KBSPIF.BK:
cost_of_equity (8.00%) = 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.