CRE.VN
Century Land JSC
Price:  
7.76 
VND
Volume:  
258,100
Viet Nam | Real Estate Management & Development

CRE.VN WACC - Weighted Average Cost of Capital

The WACC of Century Land JSC (CRE.VN) is 9.9%.

The Cost of Equity of Century Land JSC (CRE.VN) is 10.75%.
The Cost of Debt of Century Land JSC (CRE.VN) is 9.05%.

RangeSelected
Cost of equity8.9% - 12.6%10.75%
Tax rate21.1% - 23.6%22.35%
Cost of debt7.0% - 11.1%9.05%
WACC8.1% - 11.7%9.9%
WACC

CRE.VN WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium9.5%10.5%
Adjusted beta0.640.84
Additional risk adjustments0.0%0.5%
Cost of equity8.9%12.6%
Tax rate21.1%23.6%
Debt/Equity ratio
0.270.27
Cost of debt7.0%11.1%
After-tax WACC8.1%11.7%
Selected WACC9.9%

CRE.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 CRE.VN:

cost_of_equity (10.75%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.64) + 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.