SAMART.BK WACC - Weighted Average Cost of Capital

The WACC of Samart Corporation PCL (SAMART.BK) is 7.3%.

The Cost of Equity of Samart Corporation PCL (SAMART.BK) is 10.35%.

The Cost of Debt of Samart Corporation PCL (SAMART.BK) is 4.90%.

	Range	Selected
Cost of equity	8.70% - 12.00%	10.35%
Tax rate	32.60% - 35.80%	34.20%
Cost of debt	4.10% - 5.70%	4.90%
WACC	6.1% - 8.4%	7.3%

WACC

SAMART.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.83	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	12.00%

Tax rate	32.60%	35.80%
Debt/Equity ratio	0.76	0.76
Cost of debt	4.10%	5.70%

After-tax WACC	6.1%	8.4%


Selected WACC	7.3%

SAMART.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 SAMART.BK:

cost_of_equity (10.35%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.83) + 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.