SMPC.BK WACC - Weighted Average Cost of Capital
The WACC of Sahamitr Pressure Container PCL (SMPC.BK) is 7.8%.
| Range | Selected | |
| Cost of equity | 6.3% - 10.0% | 8.15% |
| Tax rate | 16.5% - 18.6% | 17.55% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.1% - 9.6% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.5 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 10.0% |
| Tax rate | 16.5% | 18.6% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.1% | 9.6% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SMPC.BK | Sahamitr Pressure Container PCL | 0.06 | 0.17 | 0.16 |
| 049830.KQ | Seung Il Corp | 0.1 | 0.65 | 0.6 |
| 3007.SR | Zahrat Al Waha for Trading Company CJSC | 0.38 | 1.71 | 1.3 |
| 603021.SS | Shandong Huapeng Glass Co Ltd | 1.21 | 1.34 | 0.67 |
| BGC.BK | BG Container Glass PCL | 3.54 | 0.54 | 0.14 |
| CSC.BK | Crown Seal PCL | 0.01 | 0.07 | 0.07 |
| DAIBOCI.KL | Daibochi Bhd | 0.1 | 0.89 | 0.82 |
| MOLDTKPAC.NS | Mold-Tek Packaging Ltd | 0.07 | 0.7 | 0.66 |
| SITHAI.BK | Srithai Superware PCL | 0.46 | 0.25 | 0.18 |
| TPAC.BK | Thai Plaspac PCL | 1.4 | 0.64 | 0.3 |
| Low | High | |
| Unlevered beta | 0.25 | 0.62 |
| Relevered beta | 0.25 | 0.64 |
| Adjusted relevered beta | 0.5 | 0.76 |
SMPC.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 SMPC.BK:
cost_of_equity (8.15%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.5) + 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.