SSP.BK WACC - Weighted Average Cost of Capital

The WACC of Sermsang Power Corporation PCL (SSP.BK) is 6.7%.

The Cost of Equity of Sermsang Power Corporation PCL (SSP.BK) is 9.50%.

The Cost of Debt of Sermsang Power Corporation PCL (SSP.BK) is 5.95%.

	Range	Selected
Cost of equity	7.00% - 12.00%	9.50%
Tax rate	5.10% - 7.70%	6.40%
Cost of debt	5.70% - 6.20%	5.95%
WACC	5.9% - 7.6%	6.7%

WACC

SSP.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.6	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.00%	12.00%

Tax rate	5.10%	7.70%
Debt/Equity ratio	2.35	2.35
Cost of debt	5.70%	6.20%

After-tax WACC	5.9%	7.6%


Selected WACC	6.7%

SSP.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 SSP.BK:

cost_of_equity (9.50%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.6) + 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.