UNIQ.BK WACC - Weighted Average Cost of Capital

The WACC of Unique Engineering and Construction PCL (UNIQ.BK) is 7.9%.

The Cost of Equity of Unique Engineering and Construction PCL (UNIQ.BK) is 24.50%.

The Cost of Debt of Unique Engineering and Construction PCL (UNIQ.BK) is 9.85%.

	Range	Selected
Cost of equity	15.80% - 33.20%	24.50%
Tax rate	31.10% - 36.00%	33.55%
Cost of debt	5.40% - 14.30%	9.85%
WACC	4.7% - 11.2%	7.9%

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	1.78	3.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.80%	33.20%

Tax rate	31.10%	36.00%
Debt/Equity ratio	11.17	11.17
Cost of debt	5.40%	14.30%

After-tax WACC	4.7%	11.2%


Selected WACC	7.9%

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 (24.50%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.78) + 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.