The WACC of Art Design & Communication JSC (ADC.VN) is 8.4%.
Range | Selected | |
Cost of equity | 11.2% - 14.8% | 13% |
Tax rate | 22.8% - 23.6% | 23.2% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 7.5% - 9.3% | 8.4% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 9.5% | 10.5% |
Adjusted beta | 0.89 | 1.05 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 11.2% | 14.8% |
Tax rate | 22.8% | 23.6% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 7.5% | 9.3% |
Selected WACC | 8.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ADC.VN | Art Design & Communication JSC | 0.88 | 0.45 | 0.27 |
002181.SZ | Guangdong Guangzhou Daily Media Co Ltd | 0.07 | 1.14 | 1.08 |
9782.T | DMS Inc | 0.02 | 0.7 | 0.69 |
EBS.VN | Educational Book JSC in Ha Noi City | 0.06 | -0.04 | -0.04 |
ECI.VN | Education Cartography and Illustration JSC | 0.07 | -0.19 | -0.18 |
EID.VN | Ha Noi Education Development And Investment JSC | 0.05 | 0.48 | 0.47 |
HBE.VN | Hatinh Book And Equiptment Education JSC | 0.05 | 0.95 | 0.92 |
LBE.VN | Long An School Book and Equipment JSC | 0.16 | -0.12 | -0.11 |
SAMBHAAV.NS | Sambhaav Media Ltd | 0.08 | 0.59 | 0.56 |
SASBADI.KL | Sasbadi Holdings Bhd | 0.14 | 0.91 | 0.82 |
SED.VN | Phuong Nam Education Investment and Development JSC | 0.23 | 0.56 | 0.47 |
Low | High | |
Unlevered beta | 0.47 | 0.56 |
Relevered beta | 0.84 | 1.07 |
Adjusted relevered beta | 0.89 | 1.05 |
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.