BCC.VN WACC - Weighted Average Cost of Capital
The WACC of Bim Son Cement JSC (BCC.VN) is 8.4%.
| Range | Selected | |
| Cost of equity | 6.0% - 11.1% | 8.55% |
| Tax rate | 7.4% - 18.4% | 12.9% |
| Cost of debt | 4.8% - 14.5% | 9.65% |
| WACC | 5.3% - 11.4% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.34 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 11.1% |
| Tax rate | 7.4% | 18.4% |
| Debt/Equity ratio | 0.72 | 0.72 |
| Cost of debt | 4.8% | 14.5% |
| After-tax WACC | 5.3% | 11.4% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BCC.VN | Bim Son Cement JSC | 0.72 | 0.95 | 0.58 |
| ACC.VN | ACC Binh Duong Investment and Construction JSC | 0.43 | -0.11 | -0.08 |
| BTS.VN | Vicem But Son Cement JSC | 1.81 | 0.55 | 0.21 |
| CCM.VN | Can Tho Mineral and Cement JSC | 0.96 | -0.43 | -0.23 |
| GKM.VN | Khang Minh Group JSC | 0.43 | 0.01 | 0.01 |
| HOM.VN | Vicem Hoang Mai Cement JSC | 0.33 | 0.68 | 0.53 |
| PTB.VN | Phu Tai JSC | 0.46 | 1.14 | 0.81 |
| THG.VN | Tien Giang Investment and Construction JSC | 0.35 | 0.92 | 0.7 |
| VHL.VN | Viglacera Ha Long JSC | 0.16 | -0.26 | -0.23 |
| VIT.VN | Viglacera Tien Son JSC | 1.23 | 0.02 | 0.01 |
| Low | High | |
| Unlevered beta | 0.01 | 0.34 |
| Relevered beta | 0.01 | 0.55 |
| Adjusted relevered beta | 0.34 | 0.7 |
BCC.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 BCC.VN:
cost_of_equity (8.55%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.34) + 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.