SYNTEC.BK WACC - Weighted Average Cost of Capital

The WACC of Syntec Construction PCL (SYNTEC.BK) is 8.3%.

The Cost of Equity of Syntec Construction PCL (SYNTEC.BK) is 10.40%.

The Cost of Debt of Syntec Construction PCL (SYNTEC.BK) is 4.25%.

	Range	Selected
Cost of equity	6.60% - 14.20%	10.40%
Tax rate	7.50% - 16.60%	12.05%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.7% - 10.9%	8.3%

WACC

SYNTEC.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.54	1.26

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	14.20%

Tax rate	7.50%	16.60%
Debt/Equity ratio	0.45	0.45
Cost of debt	4.00%	4.50%

After-tax WACC	5.7%	10.9%


Selected WACC	8.3%

SYNTEC.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 SYNTEC.BK:

cost_of_equity (10.40%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.54) + 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.