The WACC of Smart Invest Securities JSC (AAS.VN) is 13.0%.
Range | Selected | |
Cost of equity | 9.2% - 13.3% | 11.25% |
Tax rate | 20.3% - 21.4% | 20.85% |
Cost of debt | 4.0% - 32.1% | 18.05% |
WACC | 5.7% - 20.3% | 13.0% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 9.5% | 10.5% |
Adjusted beta | 0.67 | 0.91 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 9.2% | 13.3% |
Tax rate | 20.3% | 21.4% |
Debt/Equity ratio | 1.42 | 1.42 |
Cost of debt | 4.0% | 32.1% |
After-tax WACC | 5.7% | 20.3% |
Selected WACC | 13.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
AAS.VN | Smart Invest Securities JSC | 1.42 | 0 | 0 |
BMS.VN | Bao Minh Securities Co | 1 | 1.9 | 1.06 |
BSH.VN | Sai Gon Ha Noi Beer Corp | 1.1 | -0.51 | -0.28 |
EVF.VN | EVN Finance JSC | 1.28 | 1.01 | 0.5 |
HDW.VN | Hai Duong Water JSC | 0.54 | 0.04 | 0.03 |
KLB.VN | Kien Long Commercial Joint Stock Bank | 0.86 | 1.39 | 0.83 |
PHS.VN | Phu Hung Securities Corp | 0.86 | 1.67 | 0.99 |
TCI.VN | Thanh Cong Securities JSC | 0.93 | 0.45 | 0.26 |
VBB.VN | Vietnam Thuong Tin Commercial Joint Stock Bank | 3.98 | 1.11 | 0.27 |
VFS.VN | Viet First Securities Corp | 0.74 | -0.06 | -0.04 |
Low | High | |
Unlevered beta | 0.17 | 0.36 |
Relevered beta | 0.51 | 0.87 |
Adjusted relevered beta | 0.67 | 0.91 |
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 AAS.VN:
cost_of_equity (11.25%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.67) + 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.