CKG.VN
Kien Giang Construction Investment Consultancy Group
Price:  
14.2 
VND
Volume:  
97,800
Viet Nam | Construction

CKG.VN WACC - Weighted Average Cost of Capital

The WACC of Kien Giang Construction Investment Consultancy Group (CKG.VN) is 12.6%.

The Cost of Equity of Kien Giang Construction Investment Consultancy Group (CKG.VN) is 14.15%.
The Cost of Debt of Kien Giang Construction Investment Consultancy Group (CKG.VN) is 12.35%.

RangeSelected
Cost of equity12.8% - 15.5%14.15%
Tax rate19.9% - 20.6%20.25%
Cost of debt11.5% - 13.2%12.35%
WACC11.5% - 13.7%12.6%
WACC

CKG.VN WACC calculation

CategoryLowHigh
Long-term bond rate3.3%3.8%
Equity market risk premium8.3%9.3%
Adjusted beta1.151.2
Additional risk adjustments0.0%0.5%
Cost of equity12.8%15.5%
Tax rate19.9%20.6%
Debt/Equity ratio
0.570.57
Cost of debt11.5%13.2%
After-tax WACC11.5%13.7%
Selected WACC12.6%

CKG.VN WACC - Detailed calculations of Beta

Debt/EquityUnlevered
PeersCompany NameratioBetabeta
CKG.VNKien Giang Construction Investment Consultancy Group0.571.060.73
LowHigh
Unlevered beta0.730.73
Relevered beta1.221.3
Adjusted relevered beta1.151.2

CKG.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 CKG.VN:

cost_of_equity (14.15%) = risk_free_rate (3.55%) + equity_risk_premium (8.80%) * adjusted_beta (1.15) + 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.