TKS.BK WACC - Weighted Average Cost of Capital
The WACC of TKS Technologies PCL (TKS.BK) is 6.5%.
| Range | Selected | |
| Cost of equity | 5.1% - 9.1% | 7.1% |
| Tax rate | 4.3% - 7.5% | 5.9% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.9% - 8.1% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.34 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 9.1% |
| Tax rate | 4.3% | 7.5% |
| Debt/Equity ratio | 0.25 | 0.25 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.9% | 8.1% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TKS.BK | TKS Technologies PCL | 0.25 | 0.78 | 0.63 |
| 1540.HK | Left Field Printing Group Ltd | 0.05 | -0.12 | -0.12 |
| 55.HK | Neway Group Holdings Ltd | 4.61 | 0.11 | 0.02 |
| 8481.HK | Shenglong Splendecor International Ltd | 1.57 | 0.03 | 0.01 |
| FIMACOR.KL | Fima Corporation Bhd | 0.2 | 0.35 | 0.29 |
| INN.VN | Agriculture Printing and Packaging JSC | 0.12 | -0.01 | -0.01 |
| SALEE.BK | Salee Industry PCL | 0.04 | 1.32 | 1.27 |
| SFT.BK | Shrinkflex (Thailand) PCL | 0.22 | 0.67 | 0.55 |
| SLP.BK | Salee Printing PCL | 0.13 | 0.89 | 0.79 |
| TBSP.BK | Tbsp PCL | 0.01 | -0.05 | -0.05 |
| Low | High | |
| Unlevered beta | 0.02 | 0.4 |
| Relevered beta | 0.01 | 0.49 |
| Adjusted relevered beta | 0.34 | 0.66 |
TKS.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 TKS.BK:
cost_of_equity (7.10%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.34) + 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.