SF.BK
Siam Future Development PCL
Price:  
THB
Volume:  
29,700
Thailand | Real Estate Management & Development

SF.BK WACC - Weighted Average Cost of Capital

The WACC of Siam Future Development PCL (SF.BK) is 7.3%.

The Cost of Equity of Siam Future Development PCL (SF.BK) is 8.55%.
The Cost of Debt of Siam Future Development PCL (SF.BK) is 4.25%.

RangeSelected
Cost of equity6.2% - 10.9%8.55%
Tax rate6.1% - 7.6%6.85%
Cost of debt4.0% - 4.5%4.25%
WACC5.5% - 9.1%7.3%
WACC

SF.BK WACC calculation

CategoryLowHigh
Long-term bond rate2.6%3.1%
Equity market risk premium7.4%8.4%
Adjusted beta0.480.87
Additional risk adjustments0.0%0.5%
Cost of equity6.2%10.9%
Tax rate6.1%7.6%
Debt/Equity ratio
0.360.36
Cost of debt4.0%4.5%
After-tax WACC5.5%9.1%
Selected WACC7.3%

SF.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 SF.BK:

cost_of_equity (8.55%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.48) + 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.