STGT.BK WACC - Weighted Average Cost of Capital
The WACC of Sri Trang Gloves (Thailand) PCL (STGT.BK) is 9.2%.
| Range | Selected | |
| Cost of equity | 9.6% - 12.4% | 11% |
| Tax rate | 9.2% - 10.0% | 9.6% |
| Cost of debt | 4.0% - 4.8% | 4.4% |
| WACC | 8.0% - 10.3% | 9.2% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.94 | 1.05 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.6% | 12.4% |
| Tax rate | 9.2% | 10.0% |
| Debt/Equity ratio | 0.35 | 0.35 |
| Cost of debt | 4.0% | 4.8% |
| After-tax WACC | 8.0% | 10.3% |
| Selected WACC | 9.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| STGT.BK | Sri Trang Gloves (Thailand) PCL | 0.35 | 1.54 | 1.17 |
| 002382.SZ | Blue Sail Medical Co Ltd | 0.9 | 1.06 | 0.59 |
| 002950.SZ | Allmed Medical Products Co Ltd | 0.13 | 0.91 | 0.82 |
| 1763.HK | China Isotope & Radiation Corp | 0.76 | 0.71 | 0.42 |
| 600529.SS | Shandong Pharmaceutical Glass Co Ltd | 0.05 | 0.81 | 0.77 |
| 688029.SS | Micro-Tech Nanjing Co Ltd | 0.01 | 1.35 | 1.35 |
| 7780.T | Menicon Co Ltd | 0.82 | 0.62 | 0.36 |
| KOSSAN.KL | Kossan Rubber Industries Bhd | 0.02 | 0.84 | 0.83 |
| SUPERMX.KL | Supermax Corporation Bhd | 0.05 | 1.1 | 1.04 |
| TOG.BK | Thai Optical Group PCL | 0.43 | 0.43 | 0.31 |
| Low | High | |
| Unlevered beta | 0.7 | 0.82 |
| Relevered beta | 0.91 | 1.07 |
| Adjusted relevered beta | 0.94 | 1.05 |
STGT.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 STGT.BK:
cost_of_equity (11.00%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.94) + 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.