VCOM.BK WACC - Weighted Average Cost of Capital

The WACC of Vintcom Technology PCL (VCOM.BK) is 10.6%.

The Cost of Equity of Vintcom Technology PCL (VCOM.BK) is 11.20%.

The Cost of Debt of Vintcom Technology PCL (VCOM.BK) is 6.85%.

	Range	Selected
Cost of equity	9.70% - 12.70%	11.20%
Tax rate	16.70% - 18.30%	17.50%
Cost of debt	4.00% - 9.70%	6.85%
WACC	9.0% - 12.2%	10.6%

WACC

VCOM.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.96	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	12.70%

Tax rate	16.70%	18.30%
Debt/Equity ratio	0.12	0.12
Cost of debt	4.00%	9.70%

After-tax WACC	9.0%	12.2%


Selected WACC	10.6%

VCOM.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 VCOM.BK:

cost_of_equity (11.20%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.96) + 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.