The WACC of Sky ICT PCL (SKY.BK) is 8.1%.
Range | Selected | |
Cost of equity | 8.3% - 10.7% | 9.5% |
Tax rate | 12.7% - 14.9% | 13.8% |
Cost of debt | 4.6% - 7.8% | 6.2% |
WACC | 6.8% - 9.3% | 8.1% |
Category | Low | High |
Long-term bond rate | 2.6% | 3.1% |
Equity market risk premium | 7.4% | 8.4% |
Adjusted beta | 0.78 | 0.84 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.3% | 10.7% |
Tax rate | 12.7% | 14.9% |
Debt/Equity ratio | 0.53 | 0.53 |
Cost of debt | 4.6% | 7.8% |
After-tax WACC | 6.8% | 9.3% |
Selected WACC | 8.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
SKY.BK | Sky ICT PCL | 0.53 | 1.09 | 0.75 |
1949.HK | Platt Nera International Ltd | 1.93 | 1.19 | 0.45 |
3916.T | Digital Information Technologies Corp | 0.01 | 0.5 | 0.5 |
6199.T | Seraku Co Ltd | 0 | 0.41 | 0.41 |
AIT.BK | Advanced Information Technology Public Company Limited | 0.02 | 0.58 | 0.57 |
ICN.BK | Information and Communication Networks PCL | 0.13 | 1.29 | 1.16 |
IRCP.BK | International Research Corporation PCL | 0.98 | 0.67 | 0.36 |
MFEC.BK | MFEC PCL | 0.19 | 0.26 | 0.22 |
RSYSTEMS.NS | R Systems International Ltd | 0.03 | 1.06 | 1.03 |
TPS.BK | Practical Solution PCL | 0.01 | 0.47 | 0.47 |
Low | High | |
Unlevered beta | 0.46 | 0.53 |
Relevered beta | 0.67 | 0.76 |
Adjusted relevered beta | 0.78 | 0.84 |
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 SKY.BK:
cost_of_equity (9.50%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.78) + 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.