SA.BK WACC - Weighted Average Cost of Capital

The WACC of Siamese Asset PCL (SA.BK) is 10.2%.

The Cost of Equity of Siamese Asset PCL (SA.BK) is 8.55%.

The Cost of Debt of Siamese Asset PCL (SA.BK) is 14.90%.

	Range	Selected
Cost of equity	6.60% - 10.50%	8.55%
Tax rate	21.20% - 25.50%	23.35%
Cost of debt	7.20% - 22.60%	14.90%
WACC	6.0% - 14.4%	10.2%

WACC

SA.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.55	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	10.50%

Tax rate	21.20%	25.50%
Debt/Equity ratio	1.68	1.68
Cost of debt	7.20%	22.60%

After-tax WACC	6.0%	14.4%


Selected WACC	10.2%

SA.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 SA.BK:

cost_of_equity (8.55%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.55) + 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.