The WACC of Angiang Port JSC (CAG.VN) is 6.3%.
Range | Selected | |
Cost of equity | 7.4% - 9.7% | 8.55% |
Tax rate | 17.5% - 20.1% | 18.8% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 5.8% - 6.9% | 6.3% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 9.5% | 10.5% |
Adjusted beta | 0.49 | 0.57 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.4% | 9.7% |
Tax rate | 17.5% | 20.1% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 5.8% | 6.9% |
Selected WACC | 6.3% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
CAG.VN | Angiang Port JSC | 1.08 | 1.07 | 0.57 |
CCR.VN | CamRanh Port JSC | 0.03 | -0.09 | -0.09 |
DNL.VN | Da Nang Port Logistics JSC | 0.09 | 0.16 | 0.15 |
ILC.VN | International Labour and Services JSC | 0.17 | 0.7 | 0.61 |
NOS.VN | Oriental Shipping and Trading JSC | 226.29 | 1.12 | 0.01 |
SGS.VN | Saigon Shipping JSC | 0 | 0.83 | 0.83 |
VSG.VN | South Vietnam Container Shipping JSC | 10.29 | 0.82 | 0.09 |
VTX.VN | Vietranstimex Multimodal Transport Holding Co | 0.55 | -1.95 | -1.35 |
Low | High | |
Unlevered beta | 0.07 | 0.24 |
Relevered beta | 0.24 | 0.36 |
Adjusted relevered beta | 0.49 | 0.57 |
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 CAG.VN:
cost_of_equity (8.55%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.49) + 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.