BSR.VN WACC - Weighted Average Cost of Capital
The WACC of Binh Son Refining and Petrochemical JSC (BSR.VN) is 11.0%.
| Range | Selected | |
| Cost of equity | 10.4% - 14.3% | 12.35% |
| Tax rate | 5.0% - 5.9% | 5.45% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 9.3% - 12.7% | 11.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.8 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.4% | 14.3% |
| Tax rate | 5.0% | 5.9% |
| Debt/Equity ratio | 0.2 | 0.2 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 9.3% | 12.7% |
| Selected WACC | 11.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BSR.VN | Binh Son Refining and Petrochemical JSC | 0.2 | 1.53 | 1.29 |
| 688196.SS | Longyan Zhuoyue New Energy Co Ltd | 0.14 | 1.13 | 1 |
| APP.VN | Additives and Petroleum Products JSC | 0.44 | 0 | 0 |
| GULFPETRO.NS | GP Petroleums Ltd | 0.08 | 1.74 | 1.62 |
| HENGYUAN.KL | Hengyuan Refining Company Bhd | 2.64 | 0.18 | 0.05 |
| NZR.NZ | New Zealand Refining Company Ltd | 0.5 | 0.98 | 0.67 |
| OIL.VN | Petrovietnam Oil Corp | 0.77 | 1.5 | 0.87 |
| PETRONM.KL | Petron Malaysia Refining & Marketing Bhd | 1.06 | 0.39 | 0.19 |
| PZOL.TA | Paz Oil Company Ltd | 1.25 | 1.06 | 0.49 |
| SPRC.BK | Star Petroleum Refining PCL | 0.39 | 1.15 | 0.84 |
| Low | High | |
| Unlevered beta | 0.6 | 0.85 |
| Relevered beta | 0.7 | 1.01 |
| Adjusted relevered beta | 0.8 | 1.01 |
BSR.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 BSR.VN:
cost_of_equity (12.35%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.8) + 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.