The WACC of Maybank Kim Eng Securities Thailand PCL (MBKET.BK) is 8.7%.
| Range | Selected | |
| Cost of equity | 12.30% - 19.20% | 15.75% |
| Tax rate | 20.10% - 20.20% | 20.15% |
| Cost of debt | 5.00% - 5.00% | 5.00% |
| WACC | 7.3% - 10.0% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 1.49 | 2.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.30% | 19.20% |
| Tax rate | 20.10% | 20.20% |
| Debt/Equity ratio | 1.5 | 1.5 |
| Cost of debt | 5.00% | 5.00% |
| After-tax WACC | 7.3% | 10.0% |
| Selected WACC | 8.7% | |
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 MBKET.BK:
cost_of_equity (15.75%) = risk_free_rate (3.15%) + equity_risk_premium (6.80%) * adjusted_beta (1.49) + 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.