The WACC of Minor International PCL (MINT.BK) is 6.9%.
Range | Selected | |
Cost of equity | 7.9% - 10.9% | 9.4% |
Tax rate | 22.2% - 28.0% | 25.1% |
Cost of debt | 5.4% - 7.8% | 6.6% |
WACC | 5.8% - 7.9% | 6.9% |
Category | Low | High |
Long-term bond rate | 2.6% | 3.1% |
Equity market risk premium | 7.4% | 8.4% |
Adjusted beta | 0.72 | 0.87 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.9% | 10.9% |
Tax rate | 22.2% | 28.0% |
Debt/Equity ratio | 1.3 | 1.3 |
Cost of debt | 5.4% | 7.8% |
After-tax WACC | 5.8% | 7.9% |
Selected WACC | 6.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
MINT.BK | Minor International PCL | 1.3 | 0.77 | 0.38 |
AWC.BK | Asset World Corp PCL | 1.3 | 1.61 | 0.81 |
CENTEL.BK | Central Plaza Hotel PCL | 0.83 | 1.07 | 0.65 |
DTC.BK | Dusit Thani PCL | 1.66 | 0.6 | 0.27 |
ERW.BK | Erawan Group PCL | 1.4 | 1.71 | 0.83 |
GRAND.BK | Grande Asset Hotels and Property PCL | 43.49 | 0.87 | 0.03 |
LRH.BK | Laguna Resorts and Hotels PCL | 0.87 | 0.13 | 0.08 |
OHTL.BK | OHTL PCL | 0.57 | 0.45 | 0.31 |
SHR.BK | S Hotels and Resorts PCL | 3.27 | 1.53 | 0.44 |
VRANDA.BK | Veranda Resort PCL | 2.12 | 0.48 | 0.18 |
Low | High | |
Unlevered beta | 0.29 | 0.41 |
Relevered beta | 0.58 | 0.81 |
Adjusted relevered beta | 0.72 | 0.87 |
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 MINT.BK:
cost_of_equity (9.40%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.72) + 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.