UV.BK WACC - Weighted Average Cost of Capital

The WACC of Univentures PCL (UV.BK) is 7.6%.

The Cost of Equity of Univentures PCL (UV.BK) is 12.45%.

The Cost of Debt of Univentures PCL (UV.BK) is 10.90%.

	Range	Selected
Cost of equity	10.20% - 14.70%	12.45%
Tax rate	28.60% - 41.10%	34.85%
Cost of debt	10.70% - 11.10%	10.90%
WACC	7.9% - 7.3%	7.6%

WACC

UV.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	1.03	1.32

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	14.70%

Tax rate	28.60%	41.10%
Debt/Equity ratio	10.15	10.15
Cost of debt	10.70%	11.10%

After-tax WACC	7.9%	7.3%


Selected WACC	7.6%

UV.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 UV.BK:

cost_of_equity (12.45%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.03) + 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.