ADC.VN
Art Design & Communication JSC
Price:  
20,200 
VND
Volume:  
100
Viet Nam | Media

ADC.VN WACC - Weighted Average Cost of Capital

The WACC of Art Design & Communication JSC (ADC.VN) is 8.4%.

The Cost of Equity of Art Design & Communication JSC (ADC.VN) is 13%.
The Cost of Debt of Art Design & Communication JSC (ADC.VN) is 5%.

RangeSelected
Cost of equity11.2% - 14.8%13%
Tax rate22.8% - 23.6%23.2%
Cost of debt5.0% - 5.0%5%
WACC7.5% - 9.3%8.4%
WACC

ADC.VN WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium9.5%10.5%
Adjusted beta0.891.05
Additional risk adjustments0.0%0.5%
Cost of equity11.2%14.8%
Tax rate22.8%23.6%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC7.5%9.3%
Selected WACC8.4%

ADC.VN WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.470.56
Relevered beta0.841.07
Adjusted relevered beta0.891.05

ADC.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 ADC.VN:

cost_of_equity (13.00%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.89) + 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.