ZIGA.BK WACC - Weighted Average Cost of Capital

The WACC of Ziga Innovation PCL (ZIGA.BK) is 7.0%.

The Cost of Equity of Ziga Innovation PCL (ZIGA.BK) is 7.40%.

The Cost of Debt of Ziga Innovation PCL (ZIGA.BK) is 4.40%.

	Range	Selected
Cost of equity	6.40% - 8.40%	7.40%
Tax rate	17.20% - 20.70%	18.95%
Cost of debt	4.00% - 4.80%	4.40%
WACC	6.1% - 7.9%	7.0%

WACC

ZIGA.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.51	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	8.40%

Tax rate	17.20%	20.70%
Debt/Equity ratio	0.11	0.11
Cost of debt	4.00%	4.80%

After-tax WACC	6.1%	7.9%


Selected WACC	7.0%

ZIGA.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 ZIGA.BK:

cost_of_equity (7.40%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.51) + 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.