API.VN
Asia Pacific Investment JSC
Price:  
5,300.00 
VND
Volume:  
205,150.00
Viet Nam | Real Estate Management & Development
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API.VN WACC - Weighted Average Cost of Capital

The WACC of Asia Pacific Investment JSC (API.VN) is 8.9%.

The Cost of Equity of Asia Pacific Investment JSC (API.VN) is 16.35%.
The Cost of Debt of Asia Pacific Investment JSC (API.VN) is 5.50%.

Range Selected
Cost of equity 12.80% - 19.90% 16.35%
Tax rate 22.40% - 29.70% 26.05%
Cost of debt 4.00% - 7.00% 5.50%
WACC 7.0% - 10.9% 8.9%
WACC

API.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 1.06 1.53
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.80% 19.90%
Tax rate 22.40% 29.70%
Debt/Equity ratio 1.51 1.51
Cost of debt 4.00% 7.00%
After-tax WACC 7.0% 10.9%
Selected WACC 8.9%

API.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 API.VN:

cost_of_equity (16.35%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (1.06) + 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.