ABS.VN WACC - Weighted Average Cost of Capital
The WACC of Binhthuan Agriculture Services JSC (ABS.VN) is 10.3%.
| Range | Selected | |
| Cost of equity | 9.6% - 11.6% | 10.6% |
| Tax rate | 28.2% - 45.2% | 36.7% |
| Cost of debt | 9.6% - 19.7% | 14.65% |
| WACC | 9.1% - 11.5% | 10.3% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.72 | 0.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.6% | 11.6% |
| Tax rate | 28.2% | 45.2% |
| Debt/Equity ratio | 0.21 | 0.21 |
| Cost of debt | 9.6% | 19.7% |
| After-tax WACC | 9.1% | 11.5% |
| Selected WACC | 10.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ABS.VN | Binhthuan Agriculture Services JSC | 0.21 | 1.1 | 0.97 |
| CMD.VN | Construction Material & Interior Decoration JSC | 0.19 | 1.06 | 0.94 |
| HTM.VN | Hanoi Trade Joint Stock Corp | 0.32 | 0.63 | 0.52 |
| IPA.VN | Ipa Investments Group JSC | 1.36 | 1.14 | 0.6 |
| MEL.VN | Me Lin Steel JSC | 4.39 | 0.85 | 0.22 |
| PVM.VN | Petrovietnam Machinery Technology JSC | 0.26 | 0.95 | 0.81 |
| SWC.VN | Southern Waterborne Transport Corp | 0.05 | 0.53 | 0.51 |
| TNI.VN | Thanh Nam Group JSC | 2.54 | 1.09 | 0.41 |
| Low | High | |
| Unlevered beta | 0.52 | 0.64 |
| Relevered beta | 0.58 | 0.63 |
| Adjusted relevered beta | 0.72 | 0.75 |
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 (10.60%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.72) + 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.