SKY.BK
Sky ICT PCL
Price:  
14.4 
THB
Volume:  
2,568,000
Thailand | IT Services

SKY.BK WACC - Weighted Average Cost of Capital

The WACC of Sky ICT PCL (SKY.BK) is 8.1%.

The Cost of Equity of Sky ICT PCL (SKY.BK) is 9.5%.
The Cost of Debt of Sky ICT PCL (SKY.BK) is 6.2%.

RangeSelected
Cost of equity8.3% - 10.7%9.5%
Tax rate12.7% - 14.9%13.8%
Cost of debt4.6% - 7.8%6.2%
WACC6.8% - 9.3%8.1%
WACC

SKY.BK WACC calculation

CategoryLowHigh
Long-term bond rate2.6%3.1%
Equity market risk premium7.4%8.4%
Adjusted beta0.780.84
Additional risk adjustments0.0%0.5%
Cost of equity8.3%10.7%
Tax rate12.7%14.9%
Debt/Equity ratio
0.530.53
Cost of debt4.6%7.8%
After-tax WACC6.8%9.3%
Selected WACC8.1%

SKY.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 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.