The WACC of Bac Lieu Fisheries JSC (BLF.VN) is 13.6%.
| Range | Selected | |
| Cost of equity | 22.90% - 35.50% | 29.20% |
| Tax rate | 4.60% - 10.10% | 7.35% |
| Cost of debt | 4.00% - 19.70% | 11.85% |
| WACC | 6.7% - 20.4% | 13.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 2.12 | 3.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 22.90% | 35.50% |
| Tax rate | 4.60% | 10.10% |
| Debt/Equity ratio | 5.64 | 5.64 |
| Cost of debt | 4.00% | 19.70% |
| After-tax WACC | 6.7% | 20.4% |
| Selected WACC | 13.6% | |
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 BLF.VN:
cost_of_equity (29.20%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (2.12) + 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.