SLP.BK WACC - Weighted Average Cost of Capital

The WACC of Salee Printing PCL (SLP.BK) is 8.7%.

The Cost of Equity of Salee Printing PCL (SLP.BK) is 9.25%.

The Cost of Debt of Salee Printing PCL (SLP.BK) is 5.35%.

	Range	Selected
Cost of equity	7.80% - 10.70%	9.25%
Tax rate	10.40% - 22.80%	16.60%
Cost of debt	4.00% - 6.70%	5.35%
WACC	7.3% - 10.1%	8.7%

WACC

SLP.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.7	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	10.70%

Tax rate	10.40%	22.80%
Debt/Equity ratio	0.13	0.13
Cost of debt	4.00%	6.70%

After-tax WACC	7.3%	10.1%


Selected WACC	8.7%

SLP.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 SLP.BK:

cost_of_equity (9.25%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.7) + 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.