BMN.VN WACC - Weighted Average Cost of Capital
The WACC of 715. JSC (BMN.VN) is 7.0%.
| Range | Selected | |
| Cost of equity | 7.5% - 11.8% | 9.65% |
| Tax rate | 24.2% - 27.8% | 26% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.6% - 8.3% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.5 | 0.77 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 11.8% |
| Tax rate | 24.2% | 27.8% |
| Debt/Equity ratio | 0.7 | 0.7 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.6% | 8.3% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BMN.VN | 715. JSC | 0.7 | 0 | 0 |
| CI5.VN | No5 Construction Investment JSC | 0.21 | -0.25 | -0.22 |
| CT6.VN | Construction JSC No 6 | 0.44 | 1.81 | 1.37 |
| H11.VN | Hud101 Construction JSC | 3.8 | -0.22 | -0.06 |
| HTT.VN | Ha Tay Trading JSC | 1.09 | 0.84 | 0.47 |
| HU4.VN | Hud4 Investment and Construction JSC | 2.03 | 1.36 | 0.55 |
| NDX.VN | Danang Housing Development JSC | 1.03 | 0.4 | 0.23 |
| RCC.VN | Railway Construction Corporation JSC | 0.57 | 0.1 | 0.07 |
| Low | High | |
| Unlevered beta | 0.05 | 0.28 |
| Relevered beta | 0.25 | 0.66 |
| Adjusted relevered beta | 0.5 | 0.77 |
BMN.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 BMN.VN:
cost_of_equity (9.65%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.5) + 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.