The WACC of Susco PCL (SUSCO.BK) is 6.8%.
Range | Selected | |
Cost of equity | 10.3% - 13.4% | 11.85% |
Tax rate | 21.3% - 22.4% | 21.85% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 6.1% - 7.6% | 6.8% |
Category | Low | High |
Long-term bond rate | 2.6% | 3.1% |
Equity market risk premium | 7.4% | 8.4% |
Adjusted beta | 1.04 | 1.16 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 10.3% | 13.4% |
Tax rate | 21.3% | 22.4% |
Debt/Equity ratio | 1.41 | 1.41 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 6.1% | 7.6% |
Selected WACC | 6.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
SUSCO.BK | Susco PCL | 1.41 | 0.83 | 0.39 |
000554.SZ | SINOPEC Shandong Taishan Petroleum Co Ltd | 0.03 | 0.83 | 0.81 |
4200.SR | Aldrees Petroleum and Transport Services Company SJSC | 0.33 | 1.35 | 1.07 |
5009.T | Fuji Kosan Co Ltd | 0.19 | 0.66 | 0.57 |
AI.BK | Asian Insulators PCL | 0 | 0.58 | 0.58 |
AIE.BK | AI Energy PCL | 0 | 0.23 | 0.23 |
BMT.SI | New Silkroutes Group Ltd | 0.3 | 0.75 | 0.61 |
RPC.BK | RPCG PCL | 6.82 | 1.4 | 0.22 |
SPRC.BK | Star Petroleum Refining PCL | 0.43 | 1.11 | 0.83 |
TAE.BK | Thai Agro Energy PCL | 3.11 | 1.21 | 0.35 |
Low | High | |
Unlevered beta | 0.5 | 0.59 |
Relevered beta | 1.06 | 1.24 |
Adjusted relevered beta | 1.04 | 1.16 |
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 SUSCO.BK:
cost_of_equity (11.85%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.04) + 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.