The WACC of Sammakorn PCL (SAMCO.BK) is 11.2%.
| Range | Selected | |
| Cost of equity | 13.10% - 20.50% | 16.80% |
| Tax rate | 23.20% - 26.70% | 24.95% |
| Cost of debt | 4.90% - 22.60% | 13.75% |
| WACC | 5.3% - 17.2% | 11.2% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 1.42 | 2 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.10% | 20.50% |
| Tax rate | 23.20% | 26.70% |
| Debt/Equity ratio | 5.31 | 5.31 |
| Cost of debt | 4.90% | 22.60% |
| After-tax WACC | 5.3% | 17.2% |
| Selected WACC | 11.2% | |
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 SAMCO.BK:
cost_of_equity (16.80%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.42) + 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.