UNIQ.BK WACC - Weighted Average Cost of Capital

The WACC of Unique Engineering and Construction PCL (UNIQ.BK) is 7.4%.

The Cost of Equity of Unique Engineering and Construction PCL (UNIQ.BK) is 21.55%.

The Cost of Debt of Unique Engineering and Construction PCL (UNIQ.BK) is 8.20%.

	Range	Selected
Cost of equity	13.80% - 29.30%	21.55%
Tax rate	27.60% - 35.70%	31.65%
Cost of debt	5.30% - 11.10%	8.20%
WACC	5.0% - 9.7%	7.4%

WACC

UNIQ.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	1.51	3.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	29.30%

Tax rate	27.60%	35.70%
Debt/Equity ratio	7.5	7.5
Cost of debt	5.30%	11.10%

After-tax WACC	5.0%	9.7%


Selected WACC	7.4%

UNIQ.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 UNIQ.BK:

cost_of_equity (21.55%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.51) + 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.