KCM.BK WACC - Weighted Average Cost of Capital
The WACC of KC Metalsheet PCL (KCM.BK) is 7.3%.
| Range | Selected | |
| Cost of equity | 9.6% - 15.3% | 12.45% |
| Tax rate | 6.5% - 21.9% | 14.2% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.8% - 8.8% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.95 | 1.39 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.6% | 15.3% |
| Tax rate | 6.5% | 21.9% |
| Debt/Equity ratio | 1.91 | 1.91 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.8% | 8.8% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KCM.BK | KC Metalsheet PCL | 1.91 | 1.09 | 0.4 |
| 504132.BO | Permanent Magnets Ltd | 0.03 | 0.9 | 0.87 |
| 517449.BO | Magna Electro Castings Ltd | 0 | 1.22 | 1.22 |
| AMC.BK | Asia Metal PCL | 1.11 | -0.35 | -0.17 |
| CEN.BK | Capital Engineering Network PCL | 0.17 | 0.36 | 0.31 |
| CHOW.BK | Chow Steel Industries PCL | 0.76 | 0.5 | 0.29 |
| GJS.BK | G J Steel PCL | 0 | 0.11 | 0.11 |
| PAP.BK | Pacific Pipe PCL | 1.33 | 0.79 | 0.36 |
| STPI.BK | STP&I PCL | 0.95 | 1.59 | 0.85 |
| TSTH.BK | Tata Steel Thailand PCL | 0.1 | 1.32 | 1.2 |
| Low | High | |
| Unlevered beta | 0.34 | 0.58 |
| Relevered beta | 0.93 | 1.58 |
| Adjusted relevered beta | 0.95 | 1.39 |
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 (12.45%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.95) + 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.