SRICHA.BK WACC - Weighted Average Cost of Capital
The WACC of Sriracha Construction PCL (SRICHA.BK) is 6.7%.
| Range | Selected | |
| Cost of equity | 5.4% - 8.4% | 6.9% |
| Tax rate | 14.3% - 19.1% | 16.7% |
| Cost of debt | 4.6% - 7.0% | 5.8% |
| WACC | 5.3% - 8.1% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.38 | 0.57 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 8.4% |
| Tax rate | 14.3% | 19.1% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 4.6% | 7.0% |
| After-tax WACC | 5.3% | 8.1% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SRICHA.BK | Sriracha Construction PCL | 0.09 | 1.38 | 1.29 |
| EMC.BK | EMC PCL | 0.47 | -0.07 | -0.05 |
| HYDRO.BK | Hydrotek PCL | 0.39 | -1.13 | -0.86 |
| PLE.BK | Power Line Engineering PCL | 16.9 | 1.23 | 0.08 |
| PROUD.BK | Proud Real Estate PCL | 6.61 | 0.71 | 0.11 |
| PYLON.BK | Pylon PCL | 0.02 | 0.68 | 0.66 |
| SEAFCO.BK | Seafco PCL | 0.1 | 1.39 | 1.29 |
| TIGER.BK | Thai Enger Holding PCL | 0.2 | 1.38 | 1.19 |
| TOPS.JK | Totalindo Eka Persada Tbk PT | 12.59 | -0.83 | -0.07 |
| TRITN.BK | Triton Holding PCL | 0.48 | 0.06 | 0.04 |
| Low | High | |
| Unlevered beta | 0.07 | 0.33 |
| Relevered beta | 0.07 | 0.36 |
| Adjusted relevered beta | 0.38 | 0.57 |
SRICHA.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 SRICHA.BK:
cost_of_equity (6.90%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.38) + 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.