BTS.BK WACC - Weighted Average Cost of Capital

The WACC of BTS Group Holdings PCL (BTS.BK) is 9.0%.

The Cost of Equity of BTS Group Holdings PCL (BTS.BK) is 11.35%.

The Cost of Debt of BTS Group Holdings PCL (BTS.BK) is 13.50%.

	Range	Selected
Cost of equity	9.20% - 13.50%	11.35%
Tax rate	29.10% - 38.00%	33.55%
Cost of debt	4.40% - 22.60%	13.50%
WACC	4.0% - 13.9%	9.0%

WACC

BTS.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.89	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.20%	13.50%

Tax rate	29.10%	38.00%
Debt/Equity ratio	5.45	5.45
Cost of debt	4.40%	22.60%

After-tax WACC	4.0%	13.9%


Selected WACC	9.0%

BTS.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 BTS.BK:

cost_of_equity (11.35%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.89) + 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.