The WACC of Siam City Cement PCL (SCCC.BK) is 9.2%.
Range | Selected | |
Cost of equity | 9.6% - 14.0% | 11.8% |
Tax rate | 16.6% - 17.7% | 17.15% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 7.6% - 10.7% | 9.2% |
Category | Low | High |
Long-term bond rate | 2.6% | 3.1% |
Equity market risk premium | 7.4% | 8.4% |
Adjusted beta | 0.95 | 1.23 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 9.6% | 14.0% |
Tax rate | 16.6% | 17.7% |
Debt/Equity ratio | 0.46 | 0.46 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 7.6% | 10.7% |
Selected WACC | 9.2% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
SCCC.BK | Siam City Cement PCL | 0.46 | 0.51 | 0.37 |
5352.T | Krosaki Harima Corp | 0.34 | 1.26 | 0.98 |
600449.SS | Ningxia Building Materials Group Co Ltd | 0.12 | 1.23 | 1.12 |
600720.SS | Gansu Qilianshan Cement Group Co Ltd | 0.09 | 1.05 | 0.97 |
BIRLACORPN.NS | Birla Corporation Ltd | 0.36 | 1.32 | 1.01 |
CCP.BK | Chonburi Concrete Product PCL | 1.12 | 0.99 | 0.51 |
DRT.BK | Diamond Building Products PCL | 0.16 | 0.2 | 0.18 |
Q-CON.BK | Quality Construction Products PCL | 0.02 | 1.3 | 1.28 |
TASCO.BK | TIPCO Asphalt PCL | 0.15 | 0.86 | 0.77 |
TPIPL.BK | TPI Polene PCL | 5.25 | 1.06 | 0.2 |
Low | High | |
Unlevered beta | 0.67 | 0.98 |
Relevered beta | 0.93 | 1.34 |
Adjusted relevered beta | 0.95 | 1.23 |
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 SCCC.BK:
cost_of_equity (11.80%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.95) + 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.