CCT.VN WACC - Weighted Average Cost of Capital
The WACC of Cantho Port JSC (CCT.VN) is 7.5%.
| Range | Selected | |
| Cost of equity | 7.2% - 8.9% | 8.05% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.8% - 8.3% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.47 | 0.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 8.9% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.8% | 8.3% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CCT.VN | Cantho Port JSC | 0.13 | 0 | 0 |
| CCR.VN | CamRanh Port JSC | 0.03 | 0.23 | 0.22 |
| CPI.VN | Cailanport Investment JSC | 0.02 | 0.8 | 0.79 |
| DNL.VN | Da Nang Port Logistics JSC | 0.03 | 0.16 | 0.16 |
| ILC.VN | International Labour and Services JSC | 0.16 | 0.7 | 0.62 |
| NOS.VN | Oriental Shipping and Trading JSC | 176.04 | 1.12 | 0.01 |
| SGS.VN | Saigon Shipping JSC | 0 | 0.83 | 0.83 |
| VSG.VN | South Vietnam Container Shipping JSC | 13.44 | 0.82 | 0.07 |
| VTX.VN | Vietranstimex Multimodal Transport Holding Co | 0.22 | -1.95 | -1.67 |
| Low | High | |
| Unlevered beta | 0.09 | 0.21 |
| Relevered beta | 0.21 | 0.24 |
| Adjusted relevered beta | 0.47 | 0.49 |
CCT.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 CCT.VN:
cost_of_equity (8.05%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.47) + 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.