ABR.VN WACC - Weighted Average Cost of Capital
The WACC of Viet Brand Invest JSC (ABR.VN) is 6.8%.
| Range | Selected | |
| Cost of equity | 8.0% - 11.7% | 9.85% |
| Tax rate | 21.7% - 24.0% | 22.85% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.9% - 7.7% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.55 | 0.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.0% | 11.7% |
| Tax rate | 21.7% | 24.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.9% | 7.7% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ABR.VN | Viet Brand Invest JSC | 1.03 | 0.76 | 0.43 |
| ADG.VN | Clever Group Corp | 0.24 | 0.78 | 0.66 |
| BMJ.VN | Easterns AHP Minerals JSC | 0.28 | 0.17 | 0.14 |
| HIG.VN | HiPT Group JSC | 0.38 | 1.18 | 0.92 |
| HPT.VN | HPT Vietnam Corp | 0.12 | 0.39 | 0.36 |
| PWS.VN | Phu Yen Water Supply and Sewerage JSC | 0.08 | -0.16 | -0.15 |
| VFS.VN | Viet First Securities Corp | 0.79 | -0.11 | -0.07 |
| VGV.VN | Vietnam National Construction Consultant Corporation JSC | 0.03 | 0.37 | 0.36 |
| Low | High | |
| Unlevered beta | 0.31 | 0.38 |
| Relevered beta | 0.33 | 0.63 |
| Adjusted relevered beta | 0.55 | 0.75 |
ABR.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 ABR.VN:
cost_of_equity (9.85%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.55) + 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.