NTV.BK WACC - Weighted Average Cost of Capital
The WACC of Nonthavej Hospital PCL (NTV.BK) is 7.6%.
| Range | Selected | |
| Cost of equity | 9.4% - 13.1% | 11.25% |
| Tax rate | 19.1% - 19.7% | 19.4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.7% - 8.5% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.92 | 1.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.4% | 13.1% |
| Tax rate | 19.1% | 19.7% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.7% | 8.5% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NTV.BK | Nonthavej Hospital PCL | 1.06 | 0.32 | 0.17 |
| AHC.BK | Aikchol Hospital PCL | 0 | 0.38 | 0.38 |
| BCH.BK | Bangkok Chain Hospital PCL | 0.03 | 0.94 | 0.92 |
| CHG.BK | Chularat Hospital PCL | 0.04 | 1.25 | 1.21 |
| LPH.BK | Ladprao General Hospital PCL | 0.21 | 0.43 | 0.36 |
| M-CHAI.BK | Mahachai Hospital PCL | 2.67 | 0.79 | 0.25 |
| RJH.BK | Rajthanee Hospital PCL | 0.43 | 0.91 | 0.68 |
| RPH.BK | Ratchaphruek Hospital PCL | 0 | 0.2 | 0.2 |
| SHALBY.NS | Shalby Ltd | 0.24 | 1.2 | 1.01 |
| THG.BK | Thonburi Healthcare Group PCL | 1.47 | 1.41 | 0.65 |
| VIH.BK | Srivichaivejvivat PCL | 0.02 | 0.58 | 0.57 |
| Low | High | |
| Unlevered beta | 0.38 | 0.65 |
| Relevered beta | 0.88 | 1.19 |
| Adjusted relevered beta | 0.92 | 1.13 |
NTV.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 NTV.BK:
cost_of_equity (11.25%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.92) + 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.