CIA.VN
Cam Ranh International Airport Services JSC
Price:  
9,500 
VND
Volume:  
16,300
Viet Nam | Transportation Infrastructure

CIA.VN WACC - Weighted Average Cost of Capital

The WACC of Cam Ranh International Airport Services JSC (CIA.VN) is 7.4%.

The Cost of Equity of Cam Ranh International Airport Services JSC (CIA.VN) is 10.2%.
The Cost of Debt of Cam Ranh International Airport Services JSC (CIA.VN) is 5%.

RangeSelected
Cost of equity9.0% - 11.4%10.2%
Tax rate5.4% - 7.9%6.65%
Cost of debt5.0% - 5.0%5%
WACC6.8% - 8.0%7.4%
WACC

CIA.VN WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium9.5%10.5%
Adjusted beta0.650.73
Additional risk adjustments0.0%0.5%
Cost of equity9.0%11.4%
Tax rate5.4%7.9%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC6.8%8.0%
Selected WACC7.4%

CIA.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 CIA.VN:

cost_of_equity (10.20%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.65) + 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.