TEAMG.BK WACC - Weighted Average Cost of Capital

The WACC of TEAM Consulting Engineering and Management PCL (TEAMG.BK) is 8.4%.

The Cost of Equity of TEAM Consulting Engineering and Management PCL (TEAMG.BK) is 8.85%.

The Cost of Debt of TEAM Consulting Engineering and Management PCL (TEAMG.BK) is 5.20%.

	Range	Selected
Cost of equity	7.80% - 9.90%	8.85%
Tax rate	19.80% - 20.40%	20.10%
Cost of debt	4.00% - 6.40%	5.20%
WACC	7.4% - 9.4%	8.4%

WACC

TEAMG.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.71	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	9.90%

Tax rate	19.80%	20.40%
Debt/Equity ratio	0.11	0.11
Cost of debt	4.00%	6.40%

After-tax WACC	7.4%	9.4%


Selected WACC	8.4%

TEAMG.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 TEAMG.BK:

cost_of_equity (8.85%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.71) + 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.