ABS.VN WACC - Weighted Average Cost of Capital

The WACC of Binhthuan Agriculture Services JSC (ABS.VN) is 10.4%.

The Cost of Equity of Binhthuan Agriculture Services JSC (ABS.VN) is 10.70%.

The Cost of Debt of Binhthuan Agriculture Services JSC (ABS.VN) is 14.65%.

	Range	Selected
Cost of equity	9.70% - 11.70%	10.70%
Tax rate	28.20% - 45.20%	36.70%
Cost of debt	9.60% - 19.70%	14.65%
WACC	9.2% - 11.6%	10.4%

WACC

ABS.VN WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	9.5%	10.5%
Adjusted beta	0.73	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	11.70%

Tax rate	28.20%	45.20%
Debt/Equity ratio	0.21	0.21
Cost of debt	9.60%	19.70%

After-tax WACC	9.2%	11.6%


Selected WACC	10.4%

ABS.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 ABS.VN:

cost_of_equity (10.70%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.73) + 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.