QLT.BK
Qualitech PCL
Price:  
2.98 
THB
Volume:  
600
Thailand | Energy Equipment & Services

QLT.BK WACC - Weighted Average Cost of Capital

The WACC of Qualitech PCL (QLT.BK) is 8.0%.

The Cost of Equity of Qualitech PCL (QLT.BK) is 8.15%.
The Cost of Debt of Qualitech PCL (QLT.BK) is 5.5%.

RangeSelected
Cost of equity6.9% - 9.4%8.15%
Tax rate1.4% - 1.6%1.5%
Cost of debt4.0% - 7.0%5.5%
WACC6.7% - 9.2%8.0%
WACC

QLT.BK WACC calculation

CategoryLowHigh
Long-term bond rate2.6%3.1%
Equity market risk premium7.4%8.4%
Adjusted beta0.590.7
Additional risk adjustments0.0%0.5%
Cost of equity6.9%9.4%
Tax rate1.4%1.6%
Debt/Equity ratio
0.080.08
Cost of debt4.0%7.0%
After-tax WACC6.7%9.2%
Selected WACC8.0%

QLT.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 QLT.BK:

cost_of_equity (8.15%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.59) + 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.