KTIS.BK
Kaset Thai International Sugar Corporation PCL
Price:  
2.30 
THB
Volume:  
37,700.00
Thailand | Food Products
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KTIS.BK WACC - Weighted Average Cost of Capital

The WACC of Kaset Thai International Sugar Corporation PCL (KTIS.BK) is 6.2%.

The Cost of Equity of Kaset Thai International Sugar Corporation PCL (KTIS.BK) is 6.95%.
The Cost of Debt of Kaset Thai International Sugar Corporation PCL (KTIS.BK) is 5.50%.

Range Selected
Cost of equity 5.90% - 8.00% 6.95%
Tax rate 12.10% - 13.20% 12.65%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.0% - 7.3% 6.2%
WACC

KTIS.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.46 0.53
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.90% 8.00%
Tax rate 12.10% 13.20%
Debt/Equity ratio 0.61 0.61
Cost of debt 4.00% 7.00%
After-tax WACC 5.0% 7.3%
Selected WACC 6.2%

KTIS.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 KTIS.BK:

cost_of_equity (6.95%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.46) + 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.