ACE.VN WACC - Weighted Average Cost of Capital
The WACC of An Giang Centrifugal Concrete JSC (ACE.VN) is 8.8%.
| Range | Selected | |
| Cost of equity | 9.3% - 13.2% | 11.25% |
| Tax rate | 19.5% - 19.8% | 19.65% |
| Cost of debt | 4.0% - 5.9% | 4.95% |
| WACC | 7.3% - 10.4% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.69 | 0.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.3% | 13.2% |
| Tax rate | 19.5% | 19.8% |
| Debt/Equity ratio | 0.5 | 0.5 |
| Cost of debt | 4.0% | 5.9% |
| After-tax WACC | 7.3% | 10.4% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ACE.VN | An Giang Centrifugal Concrete JSC | 0.5 | 0.42 | 0.3 |
| BSP.VN | Saigon Phutho Beer JSC | 0.57 | 0.54 | 0.37 |
| HNM.VN | Hanoi Milk JSC | 1.11 | 1.18 | 0.63 |
| HSL.VN | Hong Ha Food Investment Development JSC | 0.07 | 0.63 | 0.59 |
| KIP.VN | Vietnam KIP JSC | 0.49 | -0.38 | -0.27 |
| SCL.VN | Song Da Cao Cuong JSC | 0.49 | 1.01 | 0.72 |
| SDK.VN | Mechanical Engineering Metallurgy JSC | 0.59 | 0.59 | 0.4 |
| SVG.VN | Industrial Gas and Welding Electrode JSC | 0.55 | 1.93 | 1.34 |
| VTA.VN | Vitaly JSC | 1.81 | 0.59 | 0.24 |
| Low | High | |
| Unlevered beta | 0.37 | 0.55 |
| Relevered beta | 0.54 | 0.85 |
| Adjusted relevered beta | 0.69 | 0.9 |
ACE.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 ACE.VN:
cost_of_equity (11.25%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.69) + 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.