SIMAT.BK WACC - Weighted Average Cost of Capital

The WACC of Simat Technologies PCL (SIMAT.BK) is 9.2%.

The Cost of Equity of Simat Technologies PCL (SIMAT.BK) is 12.40%.

The Cost of Debt of Simat Technologies PCL (SIMAT.BK) is 4.70%.

	Range	Selected
Cost of equity	10.50% - 14.30%	12.40%
Tax rate	16.90% - 18.40%	17.65%
Cost of debt	4.60% - 4.80%	4.70%
WACC	8.0% - 10.4%	9.2%

WACC

SIMAT.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	1.07	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	14.30%

Tax rate	16.90%	18.40%
Debt/Equity ratio	0.58	0.58
Cost of debt	4.60%	4.80%

After-tax WACC	8.0%	10.4%


Selected WACC	9.2%

SIMAT.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 SIMAT.BK:

cost_of_equity (12.40%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.07) + 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.