SAWAD.BK WACC - Weighted Average Cost of Capital

The WACC of Srisawad Corporation PCL (SAWAD.BK) is 6.7%.

The Cost of Equity of Srisawad Corporation PCL (SAWAD.BK) is 15.15%.

The Cost of Debt of Srisawad Corporation PCL (SAWAD.BK) is 4.40%.

	Range	Selected
Cost of equity	11.90% - 18.40%	15.15%
Tax rate	20.40% - 20.80%	20.60%
Cost of debt	4.00% - 4.80%	4.40%
WACC	5.6% - 7.8%	6.7%

WACC

SAWAD.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	1.26	1.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	18.40%

Tax rate	20.40%	20.80%
Debt/Equity ratio	2.66	2.66
Cost of debt	4.00%	4.80%

After-tax WACC	5.6%	7.8%


Selected WACC	6.7%

SAWAD.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 SAWAD.BK:

cost_of_equity (15.15%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.26) + 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.