SDC.BK WACC - Weighted Average Cost of Capital

The WACC of Samart Digital PCL (SDC.BK) is 7.5%.

The Cost of Equity of Samart Digital PCL (SDC.BK) is 13.85%.

The Cost of Debt of Samart Digital PCL (SDC.BK) is 5.90%.

	Range	Selected
Cost of equity	10.90% - 16.80%	13.85%
Tax rate	4.30% - 13.10%	8.70%
Cost of debt	4.00% - 7.80%	5.90%
WACC	5.6% - 9.3%	7.5%

WACC

SDC.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	1.12	1.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	16.80%

Tax rate	4.30%	13.10%
Debt/Equity ratio	2.96	2.96
Cost of debt	4.00%	7.80%

After-tax WACC	5.6%	9.3%


Selected WACC	7.5%

SDC.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 SDC.BK:

cost_of_equity (13.85%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.12) + 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.