BDW.VN
Binh Dinh Water Supply and Sewerage JSC
Price:  
28,900 
VND
Volume:  
2,000
Viet Nam | Utilities

BDW.VN WACC - Weighted Average Cost of Capital

The WACC of Binh Dinh Water Supply and Sewerage JSC (BDW.VN) is 8.2%.

The Cost of Equity of Binh Dinh Water Supply and Sewerage JSC (BDW.VN) is 8.9%.
The Cost of Debt of Binh Dinh Water Supply and Sewerage JSC (BDW.VN) is 4.25%.

RangeSelected
Cost of equity8.1% - 9.7%8.9%
Tax rate20.2% - 20.2%20.2%
Cost of debt4.0% - 4.5%4.25%
WACC7.5% - 9.0%8.2%
WACC

BDW.VN WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium9.5%10.5%
Adjusted beta0.560.57
Additional risk adjustments0.0%0.5%
Cost of equity8.1%9.7%
Tax rate20.2%20.2%
Debt/Equity ratio
0.130.13
Cost of debt4.0%4.5%
After-tax WACC7.5%9.0%
Selected WACC8.2%

BDW.VN WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.310.32
Relevered beta0.340.36
Adjusted relevered beta0.560.57

BDW.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 BDW.VN:

cost_of_equity (8.90%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.56) + 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.