SET.BD WACC - Weighted Average Cost of Capital

The WACC of Set Group Nyrt (SET.BD) is 8.5%.

The Cost of Equity of Set Group Nyrt (SET.BD) is 10.90%.

The Cost of Debt of Set Group Nyrt (SET.BD) is 5.50%.

	Range	Selected
Cost of equity	9.70% - 12.10%	10.90%
Tax rate	2.10% - 7.70%	4.90%
Cost of debt	4.00% - 7.00%	5.50%
WACC	7.3% - 9.7%	8.5%

WACC

SET.BD WACC calculation

Category	Low	High

Long-term bond rate	6.4%	6.9%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.42	0.52

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	12.10%

Tax rate	2.10%	7.70%
Debt/Equity ratio	0.71	0.71
Cost of debt	4.00%	7.00%

After-tax WACC	7.3%	9.7%


Selected WACC	8.5%

SET.BD'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 SET.BD:

cost_of_equity (10.90%) = risk_free_rate (6.65%) + equity_risk_premium (8.40%) * adjusted_beta (0.42) + 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.