UREKA.BK WACC - Weighted Average Cost of Capital

The WACC of Eureka Design PCL (UREKA.BK) is 6.9%.

The Cost of Equity of Eureka Design PCL (UREKA.BK) is 6.80%.

The Cost of Debt of Eureka Design PCL (UREKA.BK) is 7.30%.

	Range	Selected
Cost of equity	5.80% - 7.80%	6.80%
Tax rate	1.70% - 1.90%	1.80%
Cost of debt	6.80% - 7.80%	7.30%
WACC	6.1% - 7.8%	6.9%

WACC

UREKA.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.44	0.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.80%	7.80%

Tax rate	1.70%	1.90%
Debt/Equity ratio	0.44	0.44
Cost of debt	6.80%	7.80%

After-tax WACC	6.1%	7.8%


Selected WACC	6.9%

UREKA.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 UREKA.BK:

cost_of_equity (6.80%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.44) + 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.