BVS.VN
Bao Viet Securities JSC
Price:  
35,700.00 
VND
Volume:  
1,226,600.00
Viet Nam | Capital Markets
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BVS.VN WACC - Weighted Average Cost of Capital

The WACC of Bao Viet Securities JSC (BVS.VN) is 10.8%.

The Cost of Equity of Bao Viet Securities JSC (BVS.VN) is 18.05%.
The Cost of Debt of Bao Viet Securities JSC (BVS.VN) is 5.50%.

Range Selected
Cost of equity 16.20% - 19.90% 18.05%
Tax rate 16.90% - 17.70% 17.30%
Cost of debt 4.00% - 7.00% 5.50%
WACC 9.3% - 12.3% 10.8%
WACC

BVS.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 1.41 1.54
Additional risk adjustments 0.0% 0.5%
Cost of equity 16.20% 19.90%
Tax rate 16.90% 17.70%
Debt/Equity ratio 1.16 1.16
Cost of debt 4.00% 7.00%
After-tax WACC 9.3% 12.3%
Selected WACC 10.8%

BVS.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 BVS.VN:

cost_of_equity (18.05%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (1.41) + 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.