TEAM.BK WACC - Weighted Average Cost of Capital

The WACC of Team Precision PCL (TEAM.BK) is 12.3%.

The Cost of Equity of Team Precision PCL (TEAM.BK) is 12.30%.

The Cost of Debt of Team Precision PCL (TEAM.BK) is 4.25%.

	Range	Selected
Cost of equity	10.70% - 13.90%	12.30%
Tax rate	0.20% - 0.50%	0.35%
Cost of debt	4.00% - 4.50%	4.25%
WACC	10.7% - 13.9%	12.3%

WACC

TEAM.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	1.1	1.22

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	13.90%

Tax rate	0.20%	0.50%
Debt/Equity ratio	0	0
Cost of debt	4.00%	4.50%

After-tax WACC	10.7%	13.9%


Selected WACC	12.3%

TEAM.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 TEAM.BK:

cost_of_equity (12.30%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.1) + 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.