MILL.BK WACC - Weighted Average Cost of Capital
The WACC of Millcon Steel PCL (MILL.BK) is 6.2%.
| Range | Selected | |
| Cost of equity | 12.6% - 23.2% | 17.9% |
| Tax rate | 0.2% - 0.9% | 0.55% |
| Cost of debt | 4.4% - 7.0% | 5.7% |
| WACC | 4.8% - 7.7% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 1.36 | 2.32 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.6% | 23.2% |
| Tax rate | 0.2% | 0.9% |
| Debt/Equity ratio | 20.66 | 20.66 |
| Cost of debt | 4.4% | 7.0% |
| After-tax WACC | 4.8% | 7.7% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MILL.BK | Millcon Steel PCL | 20.66 | 1.27 | 0.06 |
| 2S.BK | 2S Metal PCL | 0.01 | 0.22 | 0.22 |
| AMC.BK | Asia Metal PCL | 1.09 | -0.25 | -0.12 |
| CSP.BK | CSP Steel Center PCL | 5.5 | 0.65 | 0.1 |
| GJS.BK | G J Steel PCL | 0 | 0.08 | 0.08 |
| INOX.BK | POSCO Thainox PCL | 0.01 | 0.77 | 0.76 |
| MCS.BK | MCS Steel PCL | 0.14 | 0.6 | 0.52 |
| SAM.BK | Samchai Steel Industries PCL | 8.19 | -0.63 | -0.07 |
| TMT.BK | TMT Steel PCL | 1.97 | 0.56 | 0.19 |
| TYCN.BK | Tycoons Worldwide Group Thailand PCL | 1.09 | 0.17 | 0.08 |
| Low | High | |
| Unlevered beta | 0.08 | 0.14 |
| Relevered beta | 1.54 | 2.97 |
| Adjusted relevered beta | 1.36 | 2.32 |
MILL.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 MILL.BK:
cost_of_equity (17.90%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.36) + 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.