STPI.BK
STP&I PCL
Price:  
2.44 
THB
Volume:  
691,800.00
Thailand | Metals & Mining
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STPI.BK WACC - Weighted Average Cost of Capital

The WACC of STP&I PCL (STPI.BK) is 6.4%.

The Cost of Equity of STP&I PCL (STPI.BK) is 8.90%.
The Cost of Debt of STP&I PCL (STPI.BK) is 4.40%.

Range Selected
Cost of equity 7.40% - 10.40% 8.90%
Tax rate 5.60% - 17.70% 11.65%
Cost of debt 4.00% - 4.80% 4.40%
WACC 5.6% - 7.2% 6.4%
WACC

STPI.BK WACC calculation

Category Low High
Long-term bond rate 2.6% 3.1%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.66 0.81
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 10.40%
Tax rate 5.60% 17.70%
Debt/Equity ratio 0.98 0.98
Cost of debt 4.00% 4.80%
After-tax WACC 5.6% 7.2%
Selected WACC 6.4%

STPI.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 STPI.BK:

cost_of_equity (8.90%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.66) + 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.