CLC.VN WACC - Weighted Average Cost of Capital
The WACC of Cat Loi JSC (CLC.VN) is 7.3%.
| Range | Selected | |
| Cost of equity | 7.2% - 10.2% | 8.7% |
| Tax rate | 20.2% - 20.2% | 20.2% |
| Cost of debt | 4.0% - 7.1% | 5.55% |
| WACC | 5.9% - 8.7% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.47 | 0.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 10.2% |
| Tax rate | 20.2% | 20.2% |
| Debt/Equity ratio | 0.49 | 0.49 |
| Cost of debt | 4.0% | 7.1% |
| After-tax WACC | 5.9% | 8.7% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CLC.VN | Cat Loi JSC | 0.49 | 0.53 | 0.38 |
| 033780.KS | KT&G Corp | 0.11 | 0.15 | 0.14 |
| 526723.BO | NTC Industries Ltd | 0.17 | 1.26 | 1.11 |
| DTL.VN | Dai Thien Loc Corp | 1.37 | 0.14 | 0.07 |
| GOLDENTOBC.NS | Golden Tobacco Ltd | 0.03 | 0.15 | 0.15 |
| ITIC.JK | Indonesian Tobacco Tbk PT | 0.73 | 0.41 | 0.26 |
| NST.VN | Ngan Son JSC | 0.43 | 0.78 | 0.58 |
| PLP.VN | Pha Le Plastics Manufacturing and Technology JSC | 4.17 | 0.36 | 0.08 |
| VHL.VN | Viglacera Ha Long JSC | 0.16 | -0.26 | -0.23 |
| WIIM.JK | Wismilak Inti Makmur Tbk PT | 0.25 | 1.2 | 1 |
| Low | High | |
| Unlevered beta | 0.15 | 0.31 |
| Relevered beta | 0.21 | 0.43 |
| Adjusted relevered beta | 0.47 | 0.62 |
CLC.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 CLC.VN:
cost_of_equity (8.70%) = 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.