CEE.VN WACC - Weighted Average Cost of Capital
The WACC of CII Infrastructure Construction JSC (CEE.VN) is 10.8%.
| Range | Selected | |
| Cost of equity | 7.3% - 9.8% | 8.55% |
| Tax rate | 22.5% - 22.6% | 22.55% |
| Cost of debt | 9.7% - 20.7% | 15.2% |
| WACC | 7.5% - 14.2% | 10.8% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.49 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.3% | 9.8% |
| Tax rate | 22.5% | 22.6% |
| Debt/Equity ratio | 2.4 | 2.4 |
| Cost of debt | 9.7% | 20.7% |
| After-tax WACC | 7.5% | 14.2% |
| Selected WACC | 10.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CEE.VN | CII Infrastructure Construction JSC | 2.4 | -0.03 | -0.01 |
| DTD.VN | Thanh Dat Investment Development JSC | 0.07 | 1.99 | 1.89 |
| LHC.VN | Lam Dong Investment and Hydraulic Construction JSC | 0.12 | 0.24 | 0.22 |
| SD4.VN | Song Da 4 JSC | 9.65 | -1.06 | -0.13 |
| SDT.VN | Song Da No 10 JSC | 4.13 | 3.56 | 0.85 |
| SJE.VN | Song Da No 11 JSC | 1.51 | 1.02 | 0.47 |
| TTL.VN | Thang Long Joint Stock Corp | 2.21 | 1.22 | 0.45 |
| VC6.VN | Visicons Construction and Investment JSC | 0.55 | 0.43 | 0.3 |
| VC9.VN | Construction JSC No 9 | 1.39 | 0.48 | 0.23 |
| VCC.VN | Vinaconex 25 JSC | 1.19 | 0.42 | 0.22 |
| Low | High | |
| Unlevered beta | 0.23 | 0.36 |
| Relevered beta | 0.24 | 0.39 |
| Adjusted relevered beta | 0.49 | 0.59 |
CEE.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 CEE.VN:
cost_of_equity (8.55%) = risk_free_rate (3.55%) + equity_risk_premium (8.80%) * 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.