SDC.BK WACC - Weighted Average Cost of Capital

The WACC of Samart Digital PCL (SDC.BK) is 9.6%.

The Cost of Equity of Samart Digital PCL (SDC.BK) is 15.05%.

The Cost of Debt of Samart Digital PCL (SDC.BK) is 9.50%.

	Range	Selected
Cost of equity	11.80% - 18.30%	15.05%
Tax rate	16.50% - 26.50%	21.50%
Cost of debt	4.70% - 14.30%	9.50%
WACC	6.3% - 12.9%	9.6%

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	1.24	1.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	18.30%

Tax rate	16.50%	26.50%
Debt/Equity ratio	2.22	2.22
Cost of debt	4.70%	14.30%

After-tax WACC	6.3%	12.9%


Selected WACC	9.6%

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 (15.05%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.24) + 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.