BKC.VN WACC - Weighted Average Cost of Capital
The WACC of BacKan Mineral Joint Stock Corp (BKC.VN) is 6.6%.
| Range | Selected | |
| Cost of equity | 5.2% - 8.3% | 6.75% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 4.0% - 7.5% | 5.75% |
| WACC | 5.0% - 8.1% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.26 | 0.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 8.3% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 4.0% | 7.5% |
| After-tax WACC | 5.0% | 8.1% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BKC.VN | BacKan Mineral Joint Stock Corp | 0.1 | -1.56 | -1.45 |
| 1380.HK | China Kingstone Mining Holdings Ltd | 0.52 | 1.63 | 1.16 |
| ALV.VN | Alvico Construction JSC | 0.47 | 0.57 | 0.42 |
| AUL.AX | Austar Gold Ltd | 0.08 | -0.68 | -0.64 |
| AUQ.AX | Alara Resources Ltd | 5.88 | 0.34 | 0.06 |
| ELTZ.ME | Elektrotsink PAO | 11.19 | -0.01 | 0 |
| FTZ.AX | Fertoz Ltd | 0.13 | -0.26 | -0.24 |
| KSB.VN | Binh Duong Mineral and Construction JSC | 0.62 | 1.32 | 0.89 |
| MIC.VN | Quang Nam Mineral Industry Corp | 0.33 | -0.5 | -0.4 |
| TNT.VN | Tai Nguyen Corp | 0.09 | 0.3 | 0.28 |
| Low | High | |
| Unlevered beta | -0.09 | 0.15 |
| Relevered beta | -0.1 | 0.16 |
| Adjusted relevered beta | 0.26 | 0.44 |
BKC.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 BKC.VN:
cost_of_equity (6.75%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.26) + 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.