BTG.VN WACC - Weighted Average Cost of Capital
The WACC of Tien Giang Packaging JSC (BTG.VN) is 6.7%.
| Range | Selected | |
| Cost of equity | 8.2% - 10.8% | 9.5% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.1% - 7.3% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.58 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.2% | 10.8% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.1% | 7.3% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BTG.VN | Tien Giang Packaging JSC | 1.15 | 0 | 0 |
| CET.VN | HTC Holding JSC | 0.13 | 0.15 | 0.14 |
| PMT.VN | Telvina Vietnam Communication JSC | 0 | 0.25 | 0.25 |
| SDK.VN | Mechanical Engineering Metallurgy JSC | 0.59 | 0.59 | 0.41 |
| Low | High | |
| Unlevered beta | 0.16 | 0.23 |
| Relevered beta | 0.37 | 0.51 |
| Adjusted relevered beta | 0.58 | 0.67 |
BTG.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 BTG.VN:
cost_of_equity (9.50%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.58) + 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.