SYNEX.BK WACC - Weighted Average Cost of Capital
The WACC of Synnex (Thailand) PCL (SYNEX.BK) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.2% - 9.9% | 7.55% |
| Tax rate | 17.6% - 18.9% | 18.25% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.4% - 7.4% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.36 | 0.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 9.9% |
| Tax rate | 17.6% | 18.9% |
| Debt/Equity ratio | 0.69 | 0.69 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.4% | 7.4% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SYNEX.BK | Synnex (Thailand) PCL | 0.69 | 1.08 | 0.69 |
| 2166.HK | Smart-Core Holdings Ltd | 0.38 | 0.05 | 0.04 |
| 529.HK | SiS International Holdings Ltd | 6.21 | 0.07 | 0.01 |
| 9995.T | Glosel Co Ltd | 0.54 | -0.16 | -0.11 |
| COMPINFO.NS | Compuage Infocom Ltd | 38.65 | -0.62 | -0.02 |
| MSC.BK | Metro Systems Corporation PCL | 0.3 | 0 | 0 |
| PLANET.BK | Planet Communications Asia PCL | 0.32 | 1.18 | 0.93 |
| SIMAT.BK | Simat Technologies PCL | 0.71 | 1.66 | 1.05 |
| SIS.BK | SIS Distribution Thailand PCL | 0.35 | 1.04 | 0.81 |
| TWZ.BK | TWZ Corporation PCL | 2.91 | 0.68 | 0.2 |
| Low | High | |
| Unlevered beta | 0.03 | 0.4 |
| Relevered beta | 0.04 | 0.63 |
| Adjusted relevered beta | 0.36 | 0.75 |
SYNEX.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 SYNEX.BK:
cost_of_equity (7.55%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.36) + 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.