PORT.BK
Sahathai Terminal PCL
Price:  
0.83 
THB
Volume:  
854,200
Thailand | Transportation Infrastructure

PORT.BK WACC - Weighted Average Cost of Capital

The WACC of Sahathai Terminal PCL (PORT.BK) is 8.6%.

The Cost of Equity of Sahathai Terminal PCL (PORT.BK) is 15.2%.
The Cost of Debt of Sahathai Terminal PCL (PORT.BK) is 7.55%.

RangeSelected
Cost of equity11.7% - 18.7%15.2%
Tax rate6.5% - 9.4%7.95%
Cost of debt4.0% - 11.1%7.55%
WACC5.4% - 11.8%8.6%
WACC

PORT.BK WACC calculation

CategoryLowHigh
Long-term bond rate2.6%3.1%
Equity market risk premium7.4%8.4%
Adjusted beta1.231.8
Additional risk adjustments0.0%0.5%
Cost of equity11.7%18.7%
Tax rate6.5%9.4%
Debt/Equity ratio
3.863.86
Cost of debt4.0%11.1%
After-tax WACC5.4%11.8%
Selected WACC8.6%

PORT.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 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.