SSF.BK
Surapon Foods PCL
Price:  
5.45 
THB
Volume:  
30,900
Thailand | Food Products

SSF.BK WACC - Weighted Average Cost of Capital

The WACC of Surapon Foods PCL (SSF.BK) is 7.4%.

The Cost of Equity of Surapon Foods PCL (SSF.BK) is 8.75%.
The Cost of Debt of Surapon Foods PCL (SSF.BK) is 4.25%.

RangeSelected
Cost of equity6.8% - 10.7%8.75%
Tax rate8.6% - 10.1%9.35%
Cost of debt4.0% - 4.5%4.25%
WACC6.0% - 8.8%7.4%
WACC

SSF.BK WACC calculation

CategoryLowHigh
Long-term bond rate2.6%3.1%
Equity market risk premium7.4%8.4%
Adjusted beta0.580.84
Additional risk adjustments0.0%0.5%
Cost of equity6.8%10.7%
Tax rate8.6%10.1%
Debt/Equity ratio
0.380.38
Cost of debt4.0%4.5%
After-tax WACC6.0%8.8%
Selected WACC7.4%

SSF.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 SSF.BK:

cost_of_equity (8.75%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.58) + 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.