SRICHA.BK WACC - Weighted Average Cost of Capital

The WACC of Sriracha Construction PCL (SRICHA.BK) is 6.7%.

The Cost of Equity of Sriracha Construction PCL (SRICHA.BK) is 6.90%.

The Cost of Debt of Sriracha Construction PCL (SRICHA.BK) is 5.80%.

	Range	Selected
Cost of equity	5.40% - 8.40%	6.90%
Tax rate	14.30% - 19.10%	16.70%
Cost of debt	4.60% - 7.00%	5.80%
WACC	5.3% - 8.1%	6.7%

WACC

SRICHA.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.38	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.40%	8.40%

Tax rate	14.30%	19.10%
Debt/Equity ratio	0.09	0.09
Cost of debt	4.60%	7.00%

After-tax WACC	5.3%	8.1%


Selected WACC	6.7%

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.