SCB.BK
Siam Commercial Bank PCL
Price:  
120.50 
THB
Volume:  
9,232,600.00
Thailand | Banks
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

SCB.BK WACC - Weighted Average Cost of Capital

The WACC of Siam Commercial Bank PCL (SCB.BK) is 7.8%.

The Cost of Equity of Siam Commercial Bank PCL (SCB.BK) is 8.90%.
The Cost of Debt of Siam Commercial Bank PCL (SCB.BK) is 5.00%.

Range Selected
Cost of equity 7.50% - 10.30% 8.90%
Tax rate 21.50% - 21.50% 21.50%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.7% - 8.9% 7.8%
WACC

SCB.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.67 0.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 10.30%
Tax rate 21.50% 21.50%
Debt/Equity ratio 0.28 0.28
Cost of debt 5.00% 5.00%
After-tax WACC 6.7% 8.9%
Selected WACC 7.8%

SCB.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 SCB.BK:

cost_of_equity (8.90%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.67) + 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.