KCM.BK WACC - Weighted Average Cost of Capital

The WACC of KC Metalsheet PCL (KCM.BK) is 7.7%.

The Cost of Equity of KC Metalsheet PCL (KCM.BK) is 13.50%.

The Cost of Debt of KC Metalsheet PCL (KCM.BK) is 5.50%.

	Range	Selected
Cost of equity	10.60% - 16.40%	13.50%
Tax rate	6.50% - 21.90%	14.20%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.1% - 9.2%	7.7%

WACC

KCM.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	1.08	1.52

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	16.40%

Tax rate	6.50%	21.90%
Debt/Equity ratio	1.91	1.91
Cost of debt	4.00%	7.00%

After-tax WACC	6.1%	9.2%


Selected WACC	7.7%

KCM.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 KCM.BK:

cost_of_equity (13.50%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.08) + 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.