TYCN.BK WACC - Weighted Average Cost of Capital
The WACC of Tycoons Worldwide Group Thailand PCL (TYCN.BK) is 6.6%.
| Range | Selected | |
| Cost of equity | 5.8% - 9.4% | 7.6% |
| Tax rate | 2.0% - 8.7% | 5.35% |
| Cost of debt | 5.2% - 7.0% | 6.1% |
| WACC | 5.4% - 7.8% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.43 | 0.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 9.4% |
| Tax rate | 2.0% | 8.7% |
| Debt/Equity ratio | 1.16 | 1.16 |
| Cost of debt | 5.2% | 7.0% |
| After-tax WACC | 5.4% | 7.8% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TYCN.BK | Tycoons Worldwide Group Thailand PCL | 1.16 | 0.04 | 0.02 |
| 2S.BK | 2S Metal PCL | 0.01 | 0.22 | 0.22 |
| CSP.BK | CSP Steel Center PCL | 5.13 | 0.65 | 0.11 |
| LHK.BK | Lohakit Metal PCL | 0.06 | 0.32 | 0.3 |
| MCS.BK | MCS Steel PCL | 0.13 | 0.61 | 0.54 |
| PERM.BK | Permsin Steel Works PCL | 11.6 | -0.65 | -0.05 |
| SAM.BK | Samchai Steel Industries PCL | 7.71 | -0.39 | -0.05 |
| SSSC.BK | Siam Steel Service Center PCL | 0.09 | 0.53 | 0.48 |
| STPI.BK | STP&I PCL | 0.65 | 1.16 | 0.71 |
| TGPRO.BK | Thai-German Products PCL | 2.54 | -0.23 | -0.07 |
| Low | High | |
| Unlevered beta | 0.07 | 0.25 |
| Relevered beta | 0.15 | 0.54 |
| Adjusted relevered beta | 0.43 | 0.69 |
TYCN.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 TYCN.BK:
cost_of_equity (7.60%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.43) + 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.