SFT.BK
Shrinkflex (Thailand) PCL
Price:  
2.20 
THB
Volume:  
29,300.00
Thailand | Commercial Services & Supplies
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SFT.BK WACC - Weighted Average Cost of Capital

The WACC of Shrinkflex (Thailand) PCL (SFT.BK) is 8.4%.

The Cost of Equity of Shrinkflex (Thailand) PCL (SFT.BK) is 8.85%.
The Cost of Debt of Shrinkflex (Thailand) PCL (SFT.BK) is 5.35%.

Range Selected
Cost of equity 7.00% - 10.70% 8.85%
Tax rate 20.10% - 20.10% 20.10%
Cost of debt 4.00% - 6.70% 5.35%
WACC 6.6% - 10.1% 8.4%
WACC

SFT.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.6 0.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 10.70%
Tax rate 20.10% 20.10%
Debt/Equity ratio 0.12 0.12
Cost of debt 4.00% 6.70%
After-tax WACC 6.6% 10.1%
Selected WACC 8.4%

SFT.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 SFT.BK:

cost_of_equity (8.85%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.6) + 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.