KCE.BK WACC - Weighted Average Cost of Capital

The WACC of KCE Electronics PCL (KCE.BK) is 11.7%.

The Cost of Equity of KCE Electronics PCL (KCE.BK) is 12.10%.

The Cost of Debt of KCE Electronics PCL (KCE.BK) is 4.25%.

	Range	Selected
Cost of equity	10.70% - 13.50%	12.10%
Tax rate	6.90% - 7.00%	6.95%
Cost of debt	4.00% - 4.50%	4.25%
WACC	10.3% - 13.0%	11.7%

WACC

KCE.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	1.09	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	13.50%

Tax rate	6.90%	7.00%
Debt/Equity ratio	0.06	0.06
Cost of debt	4.00%	4.50%

After-tax WACC	10.3%	13.0%


Selected WACC	11.7%

KCE.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 KCE.BK:

cost_of_equity (12.10%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.09) + 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.