PICO.BK WACC - Weighted Average Cost of Capital
The WACC of Pico Thailand PCL (PICO.BK) is 6.5%.
| Range | Selected | |
| Cost of equity | 5.0% - 8.0% | 6.5% |
| Tax rate | 19.1% - 20.9% | 20% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.0% - 8.0% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.33 | 0.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.0% | 8.0% |
| Tax rate | 19.1% | 20.9% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.0% | 8.0% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PICO.BK | Pico Thailand PCL | 0.01 | -0.54 | -0.53 |
| 2173.T | Hakuten Corp | 0.2 | 0.97 | 0.84 |
| 8403.HK | Dowway Holdings Ltd | 0.16 | -0.05 | -0.04 |
| 8627.HK | Orange Tour Cultural Holding Ltd | 0.11 | 0.61 | 0.56 |
| AQUA.BK | Aqua Corporation PCL | 2.27 | 0.32 | 0.11 |
| DYAN.JK | Dyandra Media International Tbk PT | 0.51 | 0.84 | 0.6 |
| FE.BK | Far East Fame Line DDB PCL | 0 | -0.17 | -0.17 |
| GPI.BK | Grand Prix International PCL | 0.02 | 0.04 | 0.04 |
| MACO.BK | Master Ad PCL | 0.12 | 1.24 | 1.13 |
| Low | High | |
| Unlevered beta | 0.05 | 0.47 |
| Relevered beta | 0 | 0.3 |
| Adjusted relevered beta | 0.33 | 0.53 |
PICO.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 PICO.BK:
cost_of_equity (6.50%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.33) + 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.