AGF.VN WACC - Weighted Average Cost of Capital
The WACC of An Giang Fisheries Import & Export JSC (AGF.VN) is 7.3%.
| Range | Selected | |
| Cost of equity | 10.0% - 17.6% | 13.8% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 8.0% - 8.6% | 8.3% |
| WACC | 6.7% - 8.0% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.76 | 1.32 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.0% | 17.6% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 7.42 | 7.42 |
| Cost of debt | 8.0% | 8.6% |
| After-tax WACC | 6.7% | 8.0% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AGF.VN | An Giang Fisheries Import & Export JSC | 6.59 | 0.85 | 0.14 |
| ATA.VN | NTACO Corp | 53.53 | 0.97 | 0.02 |
| CAD.VN | Cadovimex Seafood Import Export and Processing JSC | 35.23 | 1 | 0.04 |
| ICF.VN | Investment Commerce Fisheries Corp | 0.79 | 1.09 | 0.67 |
| KTS.VN | Kon Tum Sugar JSC | 0.95 | 0.62 | 0.35 |
| NGC.VN | Ngo Quyen Processing Export JSC | 9.28 | 0.9 | 0.11 |
| VHE.VN | Viet Nam Herbs and Foods JSC | 1.05 | 0.13 | 0.07 |
| VLF.VN | Vinh Long Cereal and Food Corp | 2.81 | 1.88 | 0.59 |
| VNH.VN | Viet Viet Nhat Investment Corp | 0.03 | 0.98 | 0.96 |
| Low | High | |
| Unlevered beta | 0.12 | 0.31 |
| Relevered beta | 0.64 | 1.48 |
| Adjusted relevered beta | 0.76 | 1.32 |
AGF.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 AGF.VN:
cost_of_equity (13.80%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.76) + 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.