SA.BK WACC - Weighted Average Cost of Capital

The WACC of Siamese Asset PCL (SA.BK) is 9.6%.

The Cost of Equity of Siamese Asset PCL (SA.BK) is 8.80%.

The Cost of Debt of Siamese Asset PCL (SA.BK) is 12.95%.

	Range	Selected
Cost of equity	7.60% - 10.00%	8.80%
Tax rate	20.80% - 21.70%	21.25%
Cost of debt	6.30% - 19.60%	12.95%
WACC	6.0% - 13.2%	9.6%

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	0.67	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	10.00%

Tax rate	20.80%	21.70%
Debt/Equity ratio	1.5	1.5
Cost of debt	6.30%	19.60%

After-tax WACC	6.0%	13.2%


Selected WACC	9.6%

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 (8.80%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.67) + 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.