SAFARI.BK WACC - Weighted Average Cost of Capital

The WACC of Safari World PCL (SAFARI.BK) is 12.4%.

The Cost of Equity of Safari World PCL (SAFARI.BK) is 11.55%.

The Cost of Debt of Safari World PCL (SAFARI.BK) is 12.90%.

	Range	Selected
Cost of equity	9.80% - 13.30%	11.55%
Tax rate	1.50% - 2.40%	1.95%
Cost of debt	6.20% - 19.60%	12.90%
WACC	6.7% - 18.2%	12.4%

WACC

SAFARI.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.98	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	13.30%

Tax rate	1.50%	2.40%
Debt/Equity ratio	5.55	5.55
Cost of debt	6.20%	19.60%

After-tax WACC	6.7%	18.2%


Selected WACC	12.4%

SAFARI.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 SAFARI.BK:

cost_of_equity (11.55%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.98) + 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.