SENA.BK WACC - Weighted Average Cost of Capital

The WACC of Sena Development PCL (SENA.BK) is 11.0%.

The Cost of Equity of Sena Development PCL (SENA.BK) is 8.75%.

The Cost of Debt of Sena Development PCL (SENA.BK) is 12.20%.

	Range	Selected
Cost of equity	6.90% - 10.60%	8.75%
Tax rate	6.00% - 7.40%	6.70%
Cost of debt	4.80% - 19.60%	12.20%
WACC	4.8% - 17.3%	11.0%

WACC

SENA.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.59	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	10.60%

Tax rate	6.00%	7.40%
Debt/Equity ratio	8.56	8.56
Cost of debt	4.80%	19.60%

After-tax WACC	4.8%	17.3%


Selected WACC	11.0%

SENA.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 SENA.BK:

cost_of_equity (8.75%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.59) + 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.