PERM.BK WACC - Weighted Average Cost of Capital
The WACC of Permsin Steel Works PCL (PERM.BK) is 7.9%.
| Range | Selected | |
| Cost of equity | 25.6% - 49.9% | 37.75% |
| Tax rate | 2.1% - 7.0% | 4.55% |
| Cost of debt | 4.3% - 7.0% | 5.65% |
| WACC | 5.9% - 9.9% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 3.1 | 5.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 25.6% | 49.9% |
| Tax rate | 2.1% | 7.0% |
| Debt/Equity ratio | 11.92 | 11.92 |
| Cost of debt | 4.3% | 7.0% |
| After-tax WACC | 5.9% | 9.9% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PERM.BK | Permsin Steel Works PCL | 11.92 | -0.67 | -0.05 |
| 2S.BK | 2S Metal PCL | 0.01 | 0.28 | 0.28 |
| CSP.BK | CSP Steel Center PCL | 5.37 | 0.7 | 0.11 |
| INOX.BK | POSCO Thainox PCL | 0.01 | 0.75 | 0.74 |
| KAMDHENU.NS | Kamdhenu Ltd | 0 | 1.45 | 1.45 |
| LHK.BK | Lohakit Metal PCL | 0.04 | 0.37 | 0.36 |
| SAM.BK | Samchai Steel Industries PCL | 8.74 | -0.73 | -0.08 |
| SSSC.BK | Siam Steel Service Center PCL | 0.09 | 0.57 | 0.52 |
| STPI.BK | STP&I PCL | 0.94 | 1.55 | 0.81 |
| TSTH.BK | Tata Steel Thailand PCL | 0.11 | 1.3 | 1.17 |
| Low | High | |
| Unlevered beta | 0.33 | 0.61 |
| Relevered beta | 4.13 | 7.7 |
| Adjusted relevered beta | 3.1 | 5.49 |
PERM.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 PERM.BK:
cost_of_equity (37.75%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (3.1) + 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.