SFP.BK WACC - Weighted Average Cost of Capital
The WACC of Siam Food Products PCL (SFP.BK) is 7.4%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.5% | 7.4% |
| Tax rate | 13.5% - 16.6% | 15.05% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.3% - 8.5% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.51 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.5% |
| Tax rate | 13.5% | 16.6% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.3% | 8.5% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SFP.BK | Siam Food Products PCL | 0.02 | 0.17 | 0.16 |
| CHOTI.BK | Kiang Huat Sea Gull Trading Frozen Food PCL | 2.69 | 0.7 | 0.21 |
| KASET.BK | Thai Ha PCL | 1.78 | 1.64 | 0.66 |
| LEE.BK | Lee Feed Mill PCL | 0.02 | 0.45 | 0.44 |
| MALEE.BK | Malee Group PCL | 0.36 | 1.65 | 1.27 |
| TACC.BK | TAC Consumer PCL | 0.01 | 0.6 | 0.59 |
| TIPCO.BK | Tipco Foods PCL | 0.36 | 0.23 | 0.18 |
| TMILL.BK | T S Flour Mill PCL | 0.53 | 0.43 | 0.29 |
| TSTE.BK | Thai Sugar Terminal PCL | 0.35 | -0.01 | -0.01 |
| UPOIC.BK | United Palm Oil Industry PCL | 0.02 | 0.35 | 0.34 |
| Low | High | |
| Unlevered beta | 0.26 | 0.38 |
| Relevered beta | 0.27 | 0.39 |
| Adjusted relevered beta | 0.51 | 0.59 |
SFP.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 SFP.BK:
cost_of_equity (7.40%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.51) + 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.