THCOM.BK WACC - Weighted Average Cost of Capital
The WACC of Thaicom PCL (THCOM.BK) is 8.4%.
| Range | Selected | |
| Cost of equity | 6.9% - 11.7% | 9.3% |
| Tax rate | 20.0% - 20.0% | 20% |
| Cost of debt | 5.1% - 6.2% | 5.65% |
| WACC | 6.3% - 10.4% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.59 | 0.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 11.7% |
| Tax rate | 20.0% | 20.0% |
| Debt/Equity ratio | 0.25 | 0.25 |
| Cost of debt | 5.1% | 6.2% |
| After-tax WACC | 6.3% | 10.4% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| THCOM.BK | Thaicom PCL | 0.25 | 2.13 | 1.77 |
| 093320.KQ | Kinx Inc | 0.15 | 0.22 | 0.2 |
| 1045.HK | APT Satellite Holdings Ltd | 0.06 | 0.21 | 0.2 |
| 300921.SZ | NOVA Technology Corp Ltd | 0.01 | 1.62 | 1.61 |
| 603322.SS | Super Telecom Co Ltd | 0.08 | 1 | 0.94 |
| 9450.T | Fibergate Inc | 0.3 | 0.49 | 0.4 |
| ABB.AX | Aussie Broadband Ltd | 0.3 | 0.86 | 0.69 |
| ITEL.BK | Interlink Telecom PCL | 2.35 | 0.47 | 0.16 |
| MNF.AX | MNF Group Ltd | 0.04 | -0.02 | -0.02 |
| SLC.AX | Superloop Ltd | 0.04 | 0.97 | 0.94 |
| SYMC.BK | Symphony Communication PCL | 0.44 | 1.74 | 1.29 |
| Low | High | |
| Unlevered beta | 0.4 | 0.94 |
| Relevered beta | 0.39 | 0.96 |
| Adjusted relevered beta | 0.59 | 0.97 |
THCOM.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 THCOM.BK:
cost_of_equity (9.30%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.59) + 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.