The WACC of Sahathai Terminal PCL (PORT.BK) is 8.6%.
Range | Selected | |
Cost of equity | 11.7% - 18.7% | 15.2% |
Tax rate | 6.5% - 9.4% | 7.95% |
Cost of debt | 4.0% - 11.1% | 7.55% |
WACC | 5.4% - 11.8% | 8.6% |
Category | Low | High |
Long-term bond rate | 2.6% | 3.1% |
Equity market risk premium | 7.4% | 8.4% |
Adjusted beta | 1.23 | 1.8 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 11.7% | 18.7% |
Tax rate | 6.5% | 9.4% |
Debt/Equity ratio | 3.86 | 3.86 |
Cost of debt | 4.0% | 11.1% |
After-tax WACC | 5.4% | 11.8% |
Selected WACC | 8.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
PORT.BK | Sahathai Terminal PCL | 3.86 | 0.75 | 0.17 |
498.HK | PYI Corporation Ltd | 1.14 | 1.03 | 0.5 |
9353.T | Sakurajima Futo Kaisha Ltd | 0.69 | 0.35 | 0.21 |
B.BK | Begistics PCL | 4.12 | 0.12 | 0.03 |
HAH.VN | Hai An Transport and Stevedoring JSC | 0.24 | 0.42 | 0.35 |
IPCC.JK | Indonesia Kendaraan Terminal Tbk PT | 0.23 | 0.59 | 0.49 |
IPCM.JK | Jasa Armada Indonesia Tbk PT | 0.06 | 0.52 | 0.49 |
NYT.BK | Namyong Terminal PCL | 0.7 | 0.35 | 0.21 |
PDN.VN | Dong Nai Port JSC | 0.11 | 0.53 | 0.48 |
TCL.VN | Tan Cang Logistics and Stevedoring JSC | 0.03 | 0.49 | 0.48 |
Low | High | |
Unlevered beta | 0.29 | 0.48 |
Relevered beta | 1.34 | 2.19 |
Adjusted relevered beta | 1.23 | 1.8 |
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 PORT.BK:
cost_of_equity (15.20%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.23) + 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.