SKY.BK WACC - Weighted Average Cost of Capital

The WACC of Sky ICT PCL (SKY.BK) is 8.0%.

The Cost of Equity of Sky ICT PCL (SKY.BK) is 9.50%.

The Cost of Debt of Sky ICT PCL (SKY.BK) is 6.20%.

	Range	Selected
Cost of equity	8.50% - 10.50%	9.50%
Tax rate	12.70% - 14.90%	13.80%
Cost of debt	4.60% - 7.80%	6.20%
WACC	6.9% - 9.2%	8.0%

WACC

SKY.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.79	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	10.50%

Tax rate	12.70%	14.90%
Debt/Equity ratio	0.54	0.54
Cost of debt	4.60%	7.80%

After-tax WACC	6.9%	9.2%


Selected WACC	8.0%

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 (0.79) + 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.