The WACC of Camimex Group JSC (CMX.VN) is 5.7%.
| Range | Selected | |
| Cost of equity | 10.00% - 14.00% | 12.00% |
| Tax rate | 15.20% - 16.80% | 16.00% |
| Cost of debt | 4.50% - 5.20% | 4.85% |
| WACC | 5.1% - 6.4% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.76 | 0.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.00% | 14.00% |
| Tax rate | 15.20% | 16.80% |
| Debt/Equity ratio | 3.7 | 3.7 |
| Cost of debt | 4.50% | 5.20% |
| After-tax WACC | 5.1% | 6.4% |
| Selected WACC | 5.7% | |
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 CMX.VN:
cost_of_equity (12.00%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.76) + 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.