BBC.VN WACC - Weighted Average Cost of Capital
The WACC of Bibica Corp (BBC.VN) is 9.4%.
| Range | Selected | |
| Cost of equity | 9.4% - 13.1% | 11.25% |
| Tax rate | 13.3% - 16.2% | 14.75% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 8.0% - 10.9% | 9.4% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.7 | 0.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.4% | 13.1% |
| Tax rate | 13.3% | 16.2% |
| Debt/Equity ratio | 0.31 | 0.31 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 8.0% | 10.9% |
| Selected WACC | 9.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BBC.VN | Bibica Corp | 0.31 | 0.86 | 0.68 |
| Low | High | |
| Unlevered beta | 0.68 | 0.68 |
| Relevered beta | 0.55 | 0.84 |
| Adjusted relevered beta | 0.7 | 0.89 |
BBC.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 BBC.VN:
cost_of_equity (11.25%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.7) + 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.