SKY.BK WACC - Weighted Average Cost of Capital

The WACC of Sky ICT PCL (SKY.BK) is 7.8%.

The Cost of Equity of Sky ICT PCL (SKY.BK) is 9.80%.

The Cost of Debt of Sky ICT PCL (SKY.BK) is 5.40%.

	Range	Selected
Cost of equity	8.70% - 10.90%	9.80%
Tax rate	15.40% - 17.00%	16.20%
Cost of debt	5.10% - 5.70%	5.40%
WACC	7.0% - 8.6%	7.8%

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	0.82	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	10.90%

Tax rate	15.40%	17.00%
Debt/Equity ratio	0.62	0.62
Cost of debt	5.10%	5.70%

After-tax WACC	7.0%	8.6%


Selected WACC	7.8%

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 (9.80%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.82) + 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.