MIDA.BK WACC - Weighted Average Cost of Capital

The WACC of Mida Assets PCL (MIDA.BK) is 10.5%.

The Cost of Equity of Mida Assets PCL (MIDA.BK) is 9.80%.

The Cost of Debt of Mida Assets PCL (MIDA.BK) is 12.60%.

	Range	Selected
Cost of equity	7.80% - 11.80%	9.80%
Tax rate	12.50% - 16.30%	14.40%
Cost of debt	5.60% - 19.60%	12.60%
WACC	5.2% - 15.9%	10.5%

WACC

MIDA.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.71	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	11.80%

Tax rate	12.50%	16.30%
Debt/Equity ratio	8.81	8.81
Cost of debt	5.60%	19.60%

After-tax WACC	5.2%	15.9%


Selected WACC	10.5%

MIDA.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 MIDA.BK:

cost_of_equity (9.80%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.71) + 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.