AAS.VN
Smart Invest Securities JSC
Price:  
9.2 
VND
Volume:  
858,457
Viet Nam | Finance and Insurance

AAS.VN WACC - Weighted Average Cost of Capital

The WACC of Smart Invest Securities JSC (AAS.VN) is 13.0%.

The Cost of Equity of Smart Invest Securities JSC (AAS.VN) is 11.25%.
The Cost of Debt of Smart Invest Securities JSC (AAS.VN) is 18.05%.

RangeSelected
Cost of equity9.2% - 13.3%11.25%
Tax rate20.3% - 21.4%20.85%
Cost of debt4.0% - 32.1%18.05%
WACC5.7% - 20.3%13.0%
WACC

AAS.VN WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium9.5%10.5%
Adjusted beta0.670.91
Additional risk adjustments0.0%0.5%
Cost of equity9.2%13.3%
Tax rate20.3%21.4%
Debt/Equity ratio
1.421.42
Cost of debt4.0%32.1%
After-tax WACC5.7%20.3%
Selected WACC13.0%

AAS.VN'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 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.