SAWAD.BK WACC - Weighted Average Cost of Capital

The WACC of Srisawad Corporation PCL (SAWAD.BK) is 6.8%.

The Cost of Equity of Srisawad Corporation PCL (SAWAD.BK) is 12.60%.

The Cost of Debt of Srisawad Corporation PCL (SAWAD.BK) is 4.25%.

	Range	Selected
Cost of equity	11.20% - 14.00%	12.60%
Tax rate	20.60% - 20.80%	20.70%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.1% - 7.4%	6.8%

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	1.16	1.24

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.20%	14.00%

Tax rate	20.60%	20.80%
Debt/Equity ratio	1.72	1.72
Cost of debt	4.00%	4.50%

After-tax WACC	6.1%	7.4%


Selected WACC	6.8%

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 (12.60%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.16) + 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.